Business
Work to re-start in Iraq at S
Work to re-start in Iraq at S.
About this update from Petrel Resources Plc
[{"type":"text","content":"\n RNS Number : 7404K Petrel Resources PLC 26 April 2010 \n\n26th April, 2010 \n \n \nWork to re-start in Iraq\n \n· Petrel-Makman Joint Venture to re-start to complete the Subba and Luhais oilfield development services contract\n· Petrel has received $2 million\n· Petrel to receive a further $5 million in 2 tranches over 12 months\n· Petrel maintains a profit share but has no further liability or exposure\n· This solution clears the way for expansion in Iraq\n \nThe directors of Petrel Resources Plc (AIM:PET) (\"Petrel\" or the \"Company\"), the AIM listed oil and gas explorer, are pleased to announce the settlement of all outstanding issues on the Subba and Luhais oilfield development in Southern Iraq. Petrel has handed over primary responsibility for the final phases of the work, in accordance with the original Joint Venture Agreement of December 2005, but maintains a role. Petrel no longer has any liability or exposure to any possible project losses but maintains a profit share. Mobilisation for the project, which has been in suspension for 20 months, will begin shortly. \n \nUnder the terms of the agreement reached between Petrel, Makman, its local Iraqi partner, and SCOP, an arm of the Iraqi Ministry of Oil: \n1. Petrel will receive a total of $7 million, of which $2 million has been received, and two further bank guaranteed payments of $2.5 million each in 2 tranches over 12 months; \n2. The Petrel/Makman joint venture will complete the development, with Makman assuming primary responsibility for the final phases of the work, including bulks procurement and implementation; \n3. Petrel will receive a 10% profit interest based on audited accounts; \n4. A new Letter of Credit for the balance of the contract is being put in place by the Iraqi authorities; \n5. Mobilisation begins as soon as possible. \n6. All necessary official approvals have been delivered.\n \nPetrel will now focus on developing direct oil exploration activities in Iraq. \n \nDavid Horgan, Managing Director, commented:\n\"I am delighted to report that all parties have agreed an amicable way forward for the Subba...