Tap and Mubadala Sign New Offtake Agreement for Manora Oil Field

Tap Oil Limited has announced that a new offtake agreement has been signed in relation to the marketing of crude from the Manora oil field, offshore Thailand, at a slightly improved price premium to current arrangements.

Chris Newton, Tap’s Executive Chairman, said that “Manora’s higher crude value reflects increasing market recognition for Manora crude and a structural change in the oil market being driven by the International Maritime Organization which will enforce a lower sulphur content cap on fuel for shipping by 2020. Manora’s sweet low sulphur crude is in higher demand for blending purposes by customers in Asia.”

The Manora oil field Operator and Tap’s wholly owned subsidiary, Tap Energy (Thailand) Pty Ltd (Sellers) have secured a crude offtake agreement with PTT Public Company Limited (for domestic Thailand sales) and PTT International Trading Pte Ltd (for international sales) (Buyer) for 100% of the Seller’s entitlement to Manora crude oil produced in 2019. Offtake will be up to a maximum, at the Seller’s discretion of 300,000 barrels in each month of lifting at a price of Platts Dubai plus a premium in line with improved oil market conditions.

This agreement will take effect from 1 January 2019 and has a 12 month term.