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Dublin-listed PetroNeft raises $1m to finance infrastructure development in Russia

Oil and gas explorer PetroNeft says it has agreed a deal with Alexandrovskoye Oil Refinery for up to $1m (€844,000) to finance infrastructure development on one of its licenses in Russia.

he Dublin-listed company is focused on the Tomsk Oblast region of the country, where it owns and operates 50pc of Licences 61 and 67.

The latest finance is to further develop the infrastructure of Licence 67 to enable year-round production from next year.

At present the well can only produce for three to four months each winter.

The financing will be repaid in tranches with produced oil at market rates, according to a statement from PetroNeft.

The facility will cover the entire anticipated cost of road construction.

AOR is located at Alexandrovskoye town in the north-western part of the Tomsk region located 230km from the Cheremshanskoye oil field.

PetroNeft said AOR purchased all the oil produced from the C4 well – part of Licenses 67 – during the recent extended well test at “competitive market rates.”

Production will recommence from the C4 well as soon as the winter road is in place, which is expected to be by the end of December.

Construction of the new all-weather road will occur through the winter months and should be completed in early 2021.

David Sturt, chief executive of PetroNeft Resources, said: “The financing arrangement will enable us to establish year-round production from Licence 67 from the beginning of 2021 and also provides a secure buyer for our produced oil at competitive market rates. It may also have further value, as we look at the potential of further development on Licence 67.”

Online Editors

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SSE Airtricity makes £6m bad debt provision over coronavirus

SSE Airtricity has recorded an exceptional charge of £6m (€6.7m) as a provision against bad debts arising from the coronavirus in Ireland.

ut it still recorded a profit of £42.8m (€48m) in respect of its operations across the island of Ireland in the 12 months to the end of March, up on the £38.6m (€43m) reported the prior year.

The company, which supports 3,740 jobs here, said it is continuing to advance its Arklow Bank offshore wind project, which it said is “well placed” to help Ireland achieve its Climate Action Plan target of 1GW of offshore wind power by 2025 and 3.5GW by 2030.

SSE said it retains “a strong market position” as Ireland’s largest supplier of 100pc green energy, supplying more than 700,000 customers across the island of Ireland with a 24pc market share.

The SSE group confirmed its full-year dividend and posted a better than expected annual pre-tax profit yesterday, but warned the coronavirus crisis would dent earnings for the current financial year.

The company turned its focus to renewable power generation and networks after selling its household energy supply and services arm to OVO Energy at the beginning of the year in a deal worth £500m.

SSE’s adjusted profit before tax rose to £1.02bn for the 12 months ended March 31, beating analysts’ estimates of £959.3m.

Its shares rose more than 5pc early yesterday in London and had soared more than 9pc by later in the afternoon.

SSE said it would stick with the planned full-year dividend of 80p per share for 2018-19, with the final 56p share payment to be made on September 18, 2020.

“We have put in place a comprehensive plan to achieve the related objectives of sustaining the dividend payments which provides vital income for people’s pensions and savings,” said SSE chairman Richard Gillingwater.

Meanwhile, Budget Energy, the power firm recently acquired by DCC’s Flogas unit, made a pre-tax profit of just over £3m in its last financial year, newly-filed accounts for the business show.

Budget Energy’s main business is in Northern Ireland, but it also launched in the Republic of Ireland in 2017. Budget Energy trades as BE Energy here, and has a total of more than 90,000 customers.

Accounts for the group show that it had just under 70,000 customers at the end of September last year.

Last year, Flogas bought the Irish business of Canadian firm Just Energy.

Additional reporting: Reuters

Irish Independent

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