Big picture: higher volumes, lower revenue, and a clear 2026 to-do list
Nostrum Oil & Gas has delivered a mixed but directionally interesting update. Volumes were up sharply in 2025, helped by third-party feedstock running through its processing plant and steady operations. Titled production – the volumes of final products owned by Nostrum – rose 12.9% to 16,867 boepd (barrels of oil equivalent per day), while overall processed volumes, including third-party, climbed 23.2% to 24,431 boepd.
Despite that, estimated revenue fell to US$118 million from US$137.1 million, reflecting weaker oil prices and ongoing natural decline at the Chinarevskoye field. For 2026, the company’s focus is crystal clear: keep the plant full, manage decline via targeted drilling and workovers, progress Stepnoy Leopard, and tackle debt maturing in June 2026.
Key numbers you need to know
| Metric | FY 2025 | FY 2024 | Notes |
|---|---|---|---|
| Average processed volumes | 24,431 boepd | 19,831 boepd | Up 23.2%, includes third-party tolling |
| Average titled production | 16,867 boepd | 14,935 boepd | Up 12.9%, owned by Nostrum |
| Average sales volumes | 15,146 boepd | 13,038 boepd | Up 16.2% |
| Estimated revenue | US$118.0 million | US$137.1 million | Unaudited |
| Average Brent oil price | US$70.0/bbl | US$80.6/bbl | Down 13.2% |
| Unrestricted cash | In excess of US$143 million | US$150.4 million | Down c.US$7 million in 2025 |
| Restricted cash | In excess of US$26 million | US$25.9 million | DSRA and asset liquidation fund |
Note: Financial data is unaudited and subject to year-end audit completion.
Product mix: more gas, less oil
The portfolio skewed further towards gas and LPG in 2025. Oil and condensate declined, while LPG and dry gas grew, supporting total titled volumes.
| Product | FY 2025 (boepd) | FY 2024 (boepd) | Y-on-Y change | FY 2025 mix | FY 2024 mix |
|---|---|---|---|---|---|
| Crude oil | 2,343 | 2,536 | (7.6)% | 13.9% | 17.0% |
| Stabilised condensate | 1,664 | 1,897 | (12.3)% | 9.9% | 12.7% |
| LPG | 3,162 | 2,537 | 24.6% | 18.7% | 17.0% |
| Dry gas | 9,698 | 7,965 | 21.8% | 57.5% | 53.3% |
| Total | 16,867 | 14,935 | 12.9% | 100.0% | 100.0% |
Commentary: gas-led growth and a shrinking oil barrel typically translate into lower realised pricing in a Brent-down year. That helps explain why revenue fell despite volume gains.
Third-party processing: Ural O&G deal underpins utilisation to 2031
Nostrum’s plant is the star asset, and keeping it busy matters. The company processed raw gas and condensate from Ural Oil & Gas throughout 2025, contributing to higher processed volumes and supporting steady operations.
A new agreement signed on 21 March 2025 extends third-party hydrocarbon processing through May 2031. Management highlight stronger cash flows, more efficient plant utilisation and support for cost-effective development of the Rozhkovskoye field as benefits. Terms, tariffs and expected throughput for 2026 are not disclosed.
Chinarevskoye: drilling, workovers and the 2026 production guidance
Operationally, Nostrum completed well 116_1, which came online on 21 November 2025 with rates in line with expectations. Alongside that, optimised workovers aimed to slow decline and boost efficiency.
For 2026, average daily production at the Chinarevskoye field is guided at 5,000-6,000 boepd. Note this guidance is for the field only and is not directly comparable to group-level titled production. The company indicates a comprehensive review of additional workovers and new drilling prospects is underway, which will be important to watch.
Why it matters: the field is mature and experiencing natural decline. New wells and surgical workovers can help, but the bigger levers are likely sustained third-party volumes and the Stepnoy Leopard development over the medium term.
Stepnoy Leopard strategy under review
Nostrum is reassessing development options for the Stepnoy Leopard Fields (Kamenskoe and Kamensko-Teplovsko-Tokarevskoe), weighing project economics, infrastructure, delivery points and regulatory obligations. No capex guidance or timelines are disclosed. For investors, clarity on scope, phasing and route-to-market will be key catalysts when provided.
Cash, costs and resilience: reading the 2025 financials
Even with lower Brent and field decline, the company says it generated healthy net operating cash flow before non-recurring items. After limited capex on Chinarevskoye and Stepnoy Leopard and one-off management incentive payments, unrestricted cash fell by about US$7 million over the year to more than US$143 million. Restricted cash was in excess of US$26 million.
Management emphasises cost control, earlier-than-planned maintenance and efficiency gains. The financial figures are unaudited and will be finalised with the annual report expected on or around 29 April 2026.
HSE and emissions: steady safety performance
Safety metrics are broadly solid: zero fatalities and a zero Lost Time Injury Rate in 2025. The Total Recordable Incidents Rate rose to 0.92 from 0.63. Air emissions were 4,048 tonnes against a 5,188 tonne permit, indicating headroom within environmental limits.
Debt maturing June 2026: the next big milestone
The company flags a focus on restructuring debt maturing in June 2026. The amount, instruments and proposed terms are not disclosed. In practical terms, this is the critical financial task for 2026 – successful refinancing or restructuring would de-risk the equity story, while delays or onerous terms would be a headwind.
My take: balanced progress with clear near-term risks and levers
- Positives: strong processed volumes, a long-dated third-party tolling agreement, a productive plant, and new well 116_1 online. Cash remains solid, and operating discipline is evident.
- Negatives: revenue down on price and underlying field decline; the 2026 Chinarevskoye guidance implies continued pressure on owned volumes; and debt restructuring looms.
What matters next is how Nostrum bridges 2026: keeping the plant full (including Ural O&G volumes), squeezing more barrels through targeted workovers, and setting out a credible Stepnoy Leopard plan. The debt solution is the swing factor.
What to watch between now and April
- Audited 2025 results around 29 April 2026 – cash flow detail, operating costs and any updates to guidance.
- Further colour on 2026 throughput – especially third-party feedstock levels and any additional tolling arrangements.
- Drilling/workover programme for 2026 – scope and expected impact on decline.
- Stepnoy Leopard development pathway – phasing, capex and market access details.
- Debt restructuring roadmap ahead of June 2026 maturity – structure and timing.
In short, Nostrum delivered operationally in 2025 against a tougher price backdrop. 2026 will be about executing the decline-management plan, keeping the processing hub humming, and landing a sensible debt deal. If they tick those boxes, the platform for medium-term growth looks much sturdier.
