MXP.L Share News (MXP)

Max Petroleum shares spurted higher on Tuesday after the Kazakhstan-focused company said it would save $4 a barrel following the commissioning of a new oil pipeline that will connect its Zhana Makat field with the regional oil export pipeline.The annual transport cost savings are expected to total around $4.9m once the group has ramped up production. As a result of the new pipeline, which opened in June, the group will be able to deliver oil directly from the facility to the national Kazakh pipeline network, enabling direct delivery of both domestic and export oil sales. The saving of around $4 per barrel will apply to oil produced at the Zhana Makat, Borkyldakty, Sagiz West and East Kyzylzhar I fields. "The quantity of oil being delivered via the pipeline is now ramping up to a total of approximately 3,400 barrels of oil per day, being the total volume that is currently available to be transported via this route," the group said. The volume of oil being transported via the pipeline is expected to increase further as production is increased from its Sagiz West and East Kyzylzhar I fields, once continuous trial production begins as expected next year. Shares had risen 16.6% to 1.37p by 13:05.NR