Liberty cancels Select Sands frac sand offtake deal
Published: Monday, 22 October 2018
No reason has been given for the termination of the deal that had been originally announced in March 2017.
United States-based shale oil fracker Liberty Oilfield
Services has pulled out of a major offtake agreement for the
supply of fine-mesh frac sand from Canadian supplier Select
Select Sands announced that it had received notice from
Liberty to say the fracker intended to terminate an agreement
to buy 40/70 and 100 mesh sand from its mines in the US state
of Arkansas in September.
"It is anticipated that such a termination will take effect
in late November," Select Sands said. "Although it is possible
that Liberty will purchase frac sand from the company following
a termination of the agreement, there are no assurances that
any such relationship will continue."
The multi-year supply agreement was announced in March 2017.
It was at the time projected to deliver rising sales to Liberty
through 2018 and 2019, with volumes expected to exceed 1
million short tons per year.
No reason for the termination has been provided, and Liberty
could not be reached for comment at the time of publication.