Mediterranean Oil and Gas Agrees New Production Deal for Guendalina

Mediterranean Oil and Gas (MOG) has announced that it has signed a gas sale contract for its entire net production from the Guendalina gas field to Repower Italia.

The deal is made through MOG's subsidiary Medoilgas Italia and relates to MOG's 20 per cent stake in the Italian field. Eni is the other stakeholder in the project with an 80 per cent stake.

The deal will last for one "thermal" year to begin from the 1st of October this year, and will automatically renew year-on-year unless the agreement is terminated by either side.

Last year, MOG announced that it had encountered extremely favourable results from the field, production from which began in October of last year, with the quadrupling of its net production from the field.

That announcement saw MOG's production in the asset rise from 40,000 standard cubic metres (scm) a day to 160,000 scm/day. Average daily production overall totals 630,000 scm/day.

The Guendalina field is located in 42 metres of water, 47 kilometres off the northeast coast of Italy. Mediterranean Oil and Gas stated last November that the field holds independently certified 2P gas reserves of 22 billion cubic feet.