Source - Alliance News

Prospex Energy PLC on Tuesday said it signed an 18-month gas sales agreement with BP International Ltd subsidiary BP Gas Marketing Ltd, beginning from April 1 with an option to extend.

BP International is itself a subsidiary of BP PLC.

Prospex, the Europe-focused gas and power projects investment company, said the deal entails BPGM purchasing the forecast gas production from the soon-to-be completed Podere Maiar-1 production facility at the Selva Malvezzi production concession in the Po Valley, Italy.

Prospex estimates 37 million standard cubic metres of natural gas is expected to be supplied to BPGM under the contract, with the gas supply price linked to Italy’s ‘Heren PSV day ahead mid’ price assessment.

It said the joint venture is fully funded to complete the Podere Maiar-1 production facility development and first gas is on track for early in the second quarter of 2023, on schedule and on budget.

‘The gas sales agreement with BP Gas Marketing Ltd marks a significant milestone for the company and its joint venture partner, Po Valley, as we get closer to first gas production from the Selva field development,’ said Prospex Chief Executive Officer Mark Routh.

Selva Malvezzi is operated by Po Valley Operations Pty Ltd, who also owns a 63% interest in the site, with Prospex owning the remaining 37% interest.

Routh continued: ‘We are delighted that Po Valley has secured the agreement with BP Gas Marketing Ltd, a recognisable brand in the industry, to take delivery and sell our gas and look forward to working with them. Prospex is selling its share of the gas production jointly with the operator, Po Valley, under a joint marketing agreement, in order to optimise the value of our gas sales.’

Shares in Prospex were down 4.7% to 18.10 pence each in London on Tuesday morning.

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