Tethys unit forms joint venture to make rail terminal
Tethys Petroleum Limited said its unit signed a joint venture agreement with privately held oil distributor, Eurasia Gas LLP, to build and operate an oil-loading rail terminal in Kazakhstan by June, as it looks to reduce logistics costs, Reuters reported.
Both the companies will own 50 percent stake in the terminal, Tethys, which has assets in Kazakhstan, Tajikistan and Uzbekistan, said in a statement.
Tethys is currently transporting unprocessed oil 430 kilometres away for processing.
The company expects to increase production from the well to 3,000-4,000 barrels of oil per day (bopd) from the current 750 bopd, by installing oil production infrastructure by June.
Shares of the company were flat at C$1.60 Thursday morning on Toronto Stock Exchange. They have lost about 11 percent in value in the last one year.