WTI (June) $63.02 +23c, Brent (June) $66.87 +32c, Diff -$3.85 +9c
USNG (May) $2.94 +1c, UKNG (May) 78.41p -3.42p, TTF (May) €32.3 -€0.875

Oil price

Listless, crude oil is listless, down a tad this morning but almost unchanged over last week taking into account the Easter break and WTI expiry. Tomorrow is Trump’s 100th day in office so the silence is something to be afraid about certainly on the tariff front where people are talking a more positive mood but there is still the budget reconciliation Bill to get over the line. Its also a big week for US data, many companies and the jobs data on Friday.

Petro Matad

Petro Matad has announced the signature of an Oil Sales Agreement for Block XX crude oil.

On 28 April 2025, Petro Matad and PetroChina Daqing Tamsag, the operator of neighbouring Block XIX, signed the Oil Sales Agreement covering storage, processing, transport and export of Block XX crude oil production. Petro Matad’s invoices for the production from the Heron 1 well for the period 24 October 2024 to 31 March 2025 have been submitted and, under the agreement, will be processed for payment during the month of May.

Point forward, Petro Matad is required to submit an invoice for each month’s production on or before the tenth day of the subsequent month and payment will be made during the last week of the month based on the average benchmarked price of Daqing crude oil for the month of production. Custody transfer of Block XX oil takes place at the Block XIX processing facilities and PetroChina is responsible for processing, transport and export of the crude to the buyers in China.

Mike Buck, CEO of Petro Matad, said:
“We are delighted to have signed the oil sales agreement for the commercialisation of Block XX production. This involved a number of firsts for Mongolia and whilst the process was slow, we are grateful to the Mongolian authorities and to PetroChina for their support. We look forward to establishing a cooperative routine in the sales process in the same way that the field crews in Blocks XIX and XX have done in the production operations over the last 6 months and to receiving payment for all the oil produced to date during the month of May.”

Eventually MATD has a signed up Sales Agreement with PetroChina for Block XX output and not before time. I am very happy for Mike Buck and his team who have exhibited an awesome degree of patience and I wouldn’t begrudge them a few beers to celebrate when the boat comes in.

The company has been producing c.200 b/d since October 2024 so has around 25/- b’s in stock which they will get paid for in May and after that monthly payments in arrears. What happens from here at Heron is largely what the company will explain to shareholders shortly but for now they can enjoy this for what it is, a genuine milestone for MATD.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog