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Petro Matad Faces New Export Delay After PetroChina Pauses Deliveries

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Mongolian oil producer Petro Matad confirmed fresh export disruptions after PetroChina abruptly halted deliveries from its Block XX, despite prior written assurances that issues between the two parties were resolved, the company said on Tuesday.

Petro Matad said in a statement that PetroChina back-pedalled those assurances regarding a 2026 Oil Sales Agreement and is instead now saying that PetroChina's subsidiary cannot process invoices with head office discussions ongoing.

Due to full storage tanks at Block XIX and upcoming October holidays in China, PetroChina instructed Petro Matad to halt Block XX deliveries, prompting the shut-in of the Heron-1 and Gazelle-1 wells.

Petro Matad CEO Mike Buck noted in the press release that the company has registered its strong displeasure and elevated the dispute to Mongolia's Deputy Prime Minister. The company confirmed that the official met with PetroChina Mongolia management to seek a swift resolution.

Alongside these diplomatic and regulatory efforts, Petro Matad stated it is actively engaging prospective buyers to find alternative routes to market for its accumulated crude.

Despite the delay to oil sales revenue, Petro Matad assured stakeholders that careful cash management leaves the company with sufficient resources to maintain operations into 2027.

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