Business
Production Sharing Agreement
Production Sharing Agreement.
About this update from Petrel Resources Plc
[{"type":"text","content":"\n Petrel Resources PLC\n22 May 2007\n\n\n PETREL RESOURCES PLC\n\n PRODUCTION SHARING AGREEMENT IN JORDAN FINALISED\n\n• East Safawi Block is prospective exploration territory, close to producing \n fields\n• 3 year exploration programme agreed, commencing with technical analysis and \n seismic to define drilling targets\n\nFurther to the announcement on 1 May, Petrel Resources, the AIM-listed oil\nexplorer and developer operating in Iraq, confirms finalisation of a Production\nSharing Agreement (PSA) on the East Safawi Block in Jordan. King Abdullah of\nthe Hashemite Kingdom of Jordan attended the ceremony, where a total of $2.5\nbillion of investment was announced by the Jordanian authorities.\n\nEast Safawi forms part of the prospective Arabian Desert. The East Safawi block\nadjoins the producing gas field at Risha and oil producing blocks in Syria. The\noil targets are in shallow formations and there are well-established gas plays\nat depth.\n\nJordanian Production Sharing terms are clear and attractive. The contractor\nreceives 60% of oil production - or gas equivalent - up to 10,000 barrels daily,\nwith a sliding scale to a 35% share of production over 100,000 barrels daily oil\nequivalent. There were no material objections to the Petrel contract in\nparliament or elsewhere.\n\nThe agreement envisages a 3 year first phase exploration. Initial work includes\nseismic reprocessing and reinterpretation and new seismic. Targets identified\nare expected to be drilled in 2008/09, depending on operational developments.\n\nJordan is a stable constitutional monarchy. Building on the success of his\nfather King Hussein, King Abdullah personally attended the East Safawi and other\nsigning ceremonies, which underlined Jordan's commitment to responsible\ninternational investment.\n\nJordan's success, based on pro-business policies, is a model for the region. \nEven political turbulence in neighbouring countries has been turned to advantage\nby Jordan, which has attracted outstanding entrepreneurs and investment.\n\nHistorically, a concern was that Jordan is most prospective for gas. This is\nnow seen as an advantage, due to the massive international increase in demand\nfor natural gas, both in the region and further. With the Arab gas pipeline\nproject well advanced, and planned to extend to Turkey and into the European\nnetwork, J...