Liberty cancels Select Sands frac sand offtake deal

By William Clarke
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 Sands.

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.