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FINANCIAL NEWS
Petrel Resources looks to investment in Iraq
05 May 2010
(MENAFN) The Managing Director of Petrel Resources said that the Irish explorer can expand in Iraq after a breakthrough agreement last month, although working there will be tough for foreign firms without a new oil law, Reuters reported.
Petrel won a contract in 2005 to develop the fields to a minimum capacity of 200,000 barrels of oil per day (bpd) and 120 million cubic feet of associated gas.
The remobilization has effectively begun, but technically triggers when SCOP (an arm of the Iraqi oil ministry) reopens the project letter of credit. They have not confirmed that this is done, but it should be imminent, the official said.
Petrel, continuously active in Iraq since 1999, also signed a working agreement with the former regime in 2002 for Block 6, an exploration block in western Iraq between Iraq and Jordan. Following the agreement on the southern fields, the company said work on Block 6 could now begin quite quickly.
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