- Delivery of up to 15 million cubic feet of gas a day
- Purchase price over two-and-a-half times the current Henry Hub price
Luxembourg, 24 November 2015: Several days ago in Anchorage, Alaska, the Deutsche Oel & Gas Group entered into a gas supply agreement with ConocoPhillips, one of the world’s largest gas and oil companies. The agreement is effective immediately and runs until the end of 2016, and provides for the delivery of up to 15 million cubic feet of natural gas a day to ConocoPhillips. The contractually agreed purchase price is more than two-and-a-half times the current Henry Hub price. The natural gas is produced from the Deutsche Oel & Gas Group’s own Kitchen Lights Unit production region in the Cook Inlet Basin in Southern Alaska.
“In ConocoPhillips we have gained another prestigious customer for our own natural gas production. Due to the special market situation in Alaska, with its strong regional demand, accompanied by the imminent threat of an energy shortage, we benefit from exceptionally attractive terms under this agreement. Combined with the existing long-term supply agreements, we are already in a position to sustainably generate stable cash flows,” said Kay Rieck, Chairman of the Board of Directors of Deutsche Oel & Gas S.A.