Clontarf Energy to benefit from Rurelec deal

Energy provider Rurelec has entered into an agreement with Peru Oil and Gas Exploration to purchase gas from Block 183 in Peru, if and when gas is produced, according to Clontarf Energy.

Under an agreement signed in May, Clontarf holds a three per cent overriding royalty on production from any commercial discovery.

The royalty payment is capped at $5 million (€3.7 million) per structure or $10 million in total for the block.

Rurelec is proceeding with the initial design and engineering works for the Block 183 power project following the signature of an agreement with Peru Oil and Gas Exploration Limited, which owns the rights to Block 183.