Petrel Resources - moderated discussion/research part II

Smather2

I have added a point about international law (2nd paragraph) which might explain the big cos worries about getting invloved in Iraq even after security and HCL are sorted.

bahouse - 21 Dec'06 - 10:25 - 55951 of 55959 edit


Smather2 - 21 Dec'06 - 10:05 - 55935 of 55951

"My great concern is the article seems to make out that the HCL won't be really worth the paper it's written on and subjetc to a shed load of misinterpretation, legal nasties, confusion and appeal. I would certainly like clarification on that angle."

Smather2

Just as with the security situation keeping the cat away while our pet play, so it will be with the legal nasties/compexities. For Pet being a small co isn't that fussy, Pet will be happy with "crumbs" which in environemnt of no risk in 'collecting' oil, with less than $1 exploration cost and the 2nd world oil reserves, will be worth $billions. The legal complexities would be of material only to BIG cos who are after VERY BIG profits. Further, big cos being preceived to have been associated with the war have something to worry if/when there is a more nationalistic Iraqi administration in the future, hence their worry - remember their types of contracts are in the region of 20 years + and anything can happen within such time span.

The MOST important point why, the "bigger boys seem, at this moment in time, to be running rather scared of getting involved on the ground" due the legal complexities is international law as enshrined in the UN charter concerning war situation. Under such law, occupying powers have NO LEGAL RIGHT to change anything in the country ocuppied, be it laws, institutions etc...., So basically whatever the US has done in Iraq, including HCL is illegal. So the big cos worries are understandable. A new independent Iraq government could easily revoque their contracts and not even compensate them.

But no worry for Pet: its belly is not huge and has been in Iraq prior to the war, and so is not tarnished but seen as LEGITIMATE OIL E&P COMPANY.

ALL IS ADDITIONALLY POSITIVE FOR PET, NO MATTER FROM WHICH ANGLE YOU LOOK AT IT.