Tethys Resumed Gas Sales To Kazakh Transportation Company ICA
Tethys Petroleum resumed gas sales to Kazakh transportation company Intergas Central Asia (ICA) December 9, the Cayman Islands company said December 12.
ICA had previously announced its intention to cancel the gas contract with Tethys Aral Gas (TAG) and stopped accepting gas October 18. “Tethys contested the grounds for cancellation and has been in discussions with ICA and government officials since that time regarding such matters and is pleased that they have now been resolved amicably and to the satisfaction of all parties,” it said in a statement.
Tethys said that the deal benefited from “the valuable assistance provided by its new investors and strategic in-country partners in Kazakhstan.” Its previous in-country investor Olisol did not perform as expected; failing, in October, “to provide Tethys with any of the C$9.8mn ($7.5mn) purchase price required to purchase the subscription shares under the investment agreement.”
And further, TAG took “advantage of this period of gas production downtime to conduct important routine maintenance and individual well performance analysis which would not otherwise have been possible.”
Early last month new investors applied to join the board in order to “favourably resolve any detrimental issues the company may be facing in Kazakhstan” as well as “bring much needed funding.”