PetroTal Ltd. (TAL:TSX.V) announced in a news release it signed a contract to sell to Petroperu S.A. oil from PetroTal's Bretaņa field. The initial term is one year with the possibility for extension if both parties agree to it.
Pursuant to the agreement, PetroTal will supply Petroperu with all of the oil it produces at Bretaņa, about 10,000 barrels per day (bbl/d), minus the 1,200 bbl/d it is contracted to provide to the Iquitos refinery.
PetroTal will transport the oil for Petroperu through PetroTal's North Peruvian Oil Pipeline then barge it, for about an average of $4.25 per barrel, to Saramuro, where Petroperu will purchase it at pump station No. 1.
PetroTal will sell the delivered oil to Petroperu based on the monthly average reference price of ICE Brent Crude less $4 per barrel. When Petroperu in turn ultimately sells the oil at Bayovar, PetroTal will receive a valuation adjustment, higher or lower, based on the actual price Petroperu received for the commodity.
"This sales contract will allow PetroTal to receive oil sales revenue earlier, allowing the company to maintain strong liquidity," the release noted.[NLINSERT]
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