Petrel Resources - moderated discussion/research part II

mbthedude - 21 Apr'05 - 09:38


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News
No News Available in the last month for PET





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Link to recent Opec Horgan interview 13/9/06



Trading Statement

RNS Number:4574A
Petrel Resources PLC
27 March 2006

Petrel operational update on Iraqi activities


Petrel Resources plc (AIM:PET), the London AIM-listed company working in the
Iraqi oil industry, announces an operational update:

Subba & Luhais Oil Field Development project is moving ahead

* Project personnel mobilised

* Engineering work underway at Petrel offices in Europe

* Joint Venture with local partner

* Letter of Credit opened and activated

* No insuperable security problems encountered

Project Personnel Mobilised and Engineering Work Underway

During March Petrel and partners held technical meetings with the Iraqi Ministry
of Oil State Company for Oil Projects (SCOP) to present design work to date and
to review our overall schedule.

Early mobilisation of our Engineering Team allowed Petrel to progress ahead of
schedule. Processing and design conditions were agreed.

Prior involvement of major suppliers (such as Gas Compression Systems) confirmed
the technical and commercial basis of supply as we had originally tendered. We
anticipate placing long lead orders during the 3rd quarter of 2006.

SCOP also confirmed their desire to utilise the associated gas produced from the
Luhais field - rather then the historical method of flaring. Accordingly we
established a Work Group to prioritise and expedite plant deliveries to achieve
early revenue. This will also provide environmental and operational benefits.
This confirms official confidence in our abilities and commitment to help
develop the Luhais and Subba oil fields.

Our focus is now twofold; on design definition as part of our Front End
Engineering Design program for SCOP review and acceptance in the 3rd quarter of
2006 and, secondly, in securing equipment and delivery conditions for the Long
Lead items and pipeline material.


Letter of Credit opened and activated:

We agreed with the Iraqi Ministry of Oil (SCOP) and the Trade Bank of Iraq (TBI)
the conditions and procedures for the issue of the Project Letter of Credit (LC)
from the TBI that made available the circa US$20 million advance payment. This
will also provide acceptable collateral for further payments from TBI and
issuance of subsidiary Letters of Credit to our major suppliers.

We set up a trading account with the TBI to handle finances on behalf of the
Ministry of Oil. Our Joint Venture partner submitted the necessary collateral
for Performance Bonds and Bank Guarantees.


Joint Venture with local partner progressing well:

As previously announced Petrel established a joint venture with a large Iraqi
group, Makman, to develop the Subba and Luhais project.

Together we have established structures and responsibilities within the Joint
Venture Company. We have mobilised personnel to the Project offices in Baghdad,
London, Italy and Istanbul with support from our own corporate office and
Makman's office in northern Iraq.

Our Iraqi partners bring local contacts and experience. Makman has almost
completed detailed design on two other oil field projects in Iraq and are now
placing purchase orders for these. We expect this knowledge and experience to
reduce our project risks and cost.


Petrel Managing Director, David Horgan summarised:

'Our project development is proceeding according to plan. Petrel has attracted
excellent partners and suppliers. We have built a team experienced in
overcoming technical challenges in fluid environments. The project is fully
staffed and work is underway.

There are risks but they are manageable. Petrel has expanded its presence in
Baghdad and elsewhere in Iraq. The Subba & Luhais Project provides an
infrastructure for advancing all our activities in Iraq.

The Iraqi authorities continue to give encouragement and support. We look
forward to the formation of the national government following successful
elections with a high participation rate.

We have encountered no insuperable security problems'.


Petrel to reinvest in Iraq oil

Sunday March 19th 2006

MARTIN FITZPATRICK

DAVID Horgan, CEO of Petrel Resources, says the $5m (€4.2m) his firm expects from its joint venture in Iraq's war-torn oilfields will be reinvested in Iraqi exploration.

"Any profit we make will go back into the ground. Our main focus will be on an exploration programme in Iraq that will drill deeper than before. It will be done at our own risk," he said.

The Irish-owned and led exploration outfit was last week cited in the UK media as being a beneficiary of the Iraqi war dividend to the tune of €80m-plus. However, Mr Horgan said the figure only related to the last two years' increase in their market capitalisation.

Earlier this year Petrel disclosed its joint venture agreement with Makman Oil & Gas in an oilfield services contract. Makman will provide security, local transport and engineering support. This is the venture that could spin-off profits of $5m to Petrel.



Director Options
Petrel Resources PLC
06 March 2006


Petrel Resources announces that it was informed on 3 March 2006 that Stefano
Borghi, a director of the Company, has exercised options over 60,000 shares at
5p each. In addition, also on 3 March 2006, Mr Borghi purchased 40,000 shares in
the Company at 50p per share. His total holding is now 155,182 shares
representing approximately 0.23% of the issued share capital of the Company.
Application will be made for the 60,000 new ordinary shares to be admitted to
AIM and it is expected that admission will take place on 10 March 2006.

Additional Listing 10 Feb

RNS Number:2733Y
Petrel Resources PLC
10 February 2006

Petrel Resources announces that it has issued 1,000,000 ordinary shares in the
Company to the Company's engineering consultants in lieu of fees for work done.
The Company also announced on 9 February 2006 that options over 100,000 shares
had been exercised. Application has been made for the total of 1,100,000 shares
to be admitted to AIM and it is expected that admission will take place on 16
February 2006.

RNS Number:2000Y
Petrel Resources PLC
09 February 2006

Petrel Resources announces that it was informed today that Mr Guy Delbes, a
director of the Company, has exercised share options over 100,000 shares at 2.5p
each. His total holding is now 240,000 shares representing approximately 0.36%
of the issued share capital of the Company.

Re Alliance 6 Jan 06

RNS Number:5765W
Petrel Resources PLC
06 January 2006

Petrel Resources enters into Joint Venture to develop Subba & Luhais oil field

Petrel Resources (AIM: PET), is pleased to announce a Joint Venture with a
leading Iraqi Contracting Group, Makman Oil & Gas ("Makman"). The JV covers the Subba & Luhais oil field development services contract awarded to Petrel by the Iraqi Ministry of Oil in September 2005, and formally signed in December 2005.
The arrangement is subject to the approval of the Iraqi Ministry of Oil.

Makman will, provide security, local transport as well as construction and
engineering support. Petrel will continue to provide overall project
management.

Makman is part of a large Iraq commercial group. Petrel and Makman will form a
new company for the purposes of the JV in which each party will have a 50%
share. Under the Agreement, Makman will provide a Bank Guarantee for the 5%
Performance Bond, and a further Bank Guarantee to enable the Iraqi Ministry of
Oil's project company to issue a 10% advance payment to finance the project.

Commenting on the Joint Venture Agreement, Petrel Managing Director David Horgan said:

'Petrel has always been committed to working closely with Iraqis and maximising
local content. Our partner is Iraq's leading construction group and already
working on two similar projects for the Iraqi Ministry of Oil. On recent visits
to their operations we have been impressed by their professionalism, technical
excellence and strong local credibility. The arrangement is a major advance and
helps to integrate Petrel into the local business community'.

Re Contract

RNS Number:0401V
Petrel Resources PLC
02 December 2005

Petrel Signs Iraqi Contract

Further to the announcement made on 7th September 2005, Petrel is pleased to
announce that it has formally signed on 1st December 2005 the Subba & Luhais oil
field development services contract with the Iraq Ministry of Oil.

The project is to develop existing reserves to raise production from under
50,000 barrels of oil daily to over 200,000 barrels of oil and 120 million cubic
feet of gas daily.

Petrel has mobilized a development team: initial work is mainly engineering
design. We plan to conduct site surveys in close cooperation with Iraqi
Ministry of Oil officials early in 2006.

The Subba & Luhais oil field development services contract is for $197.4
million.


Additional Listing

RNS Number:3336S
Petrel Resources PLC
06 October 2005

Petrel Resources PLC announces that it has completed a placing of 4,026,707 new
ordinary shares at 65p per share to raise #2.61 million, net of expenses. The
funds will be used to enable the Company to commence work on the Subba and
Luhais field. An additional 55,182 new ordinary share will be issued to Mr
Stefano Borghi, a director of the Company, as commission for part of the placing
and application has been made for 4,081,889 shares to be admitted to AIM. It is
expected that admission will take place and dealings will commence on 13 October
2005.

Following this issue of ordinary shares, Mr Borghi's holding of ordinary shares
will be 55,182 share, representing approximately 0.08% of the enlarged issued
share capital.


5 October 2005 Re Agreement

RNS Number:2437S
Petrel Resources PLC
05 October 2005

Petrel has signed a Technical Cooperation Agreement called a 'Framework of Case
Study' on the Merjan Block with the Oil Exploration Company of the Iraqi
Ministry of Oil.

The Merjan Block is a 300 km2 area surrounding the Merjan oil field, which was
discovered by the Ministry of Oil in 1983. It is located south of Razzaza Lake
in central western Iraq, about 45km east of Block 6 and 50km west of the city of
Karbala.

A team will be formed of four people from Petrel and four from the Oil
Exploration Company of the Iraqi Ministry of Oil to conduct the study.

Petrel also committed to assist the Oil Exploration Company on latest technology
and training courses.

Coming soon after the award of the Subba & Luhais oil field development services
contract by the Iraqi Ministry of Oil's project division (SCOP), this represents
an important step in building an Iraq-centred oil independent.

Petrel hopes to expand and deepen its cooperation with the Iraqi Ministry of Oil
as quickly as possible.


Petrel signs Iraq oil deal
02 October 2005

Irish petroleum explorer Petrel Resources is set to sign its second significant agreement this weekend with Iraqi oil officials to help to identify new oil resources in the war-torn country.According to market sources, officials from the Ministry of Oil in Baghdad plan to meet today in Dubai with Petrel and three other oil companies - Norway's Statoil, Dubai-based Crescent Oil and Gas, and Pertamina, Indonesia's state-owned oil giant.

Petrel is understood to have won one of four technical agreements that will give it exclusive access to oil data from the Mesopotomia area of Iraq.
The significance of the deal for the company is that it confirms that Petrel has made inroads into pitching for contracts in Iraq. Petrel chief executive David Horgan has visited the country on numerous occasions during the worst of the violence there.It is believed the ministry has offered the company an agreement to view data of a geological area in the western desert. The area is known to have significant oil-bearing potential.

It is unlikely that Petrel will gain rights over the area to which it has been given access, but the geological data will give it an advantage if it were to be offered the chance to develop any oil fields in the future. Petrel is likely to have access to the data for the next 12 months. Earlier this month, Petrel won a €164 million contract to develop two oilfields in Iraq to quadruple production to 200,000 barrels a day.It won the contract to develop the Suba and Luhais fields in southern Iraq to boost output from less than 50,000 barrels a day.



Why you should always DYOR 21/9/05

EK has stated that he is shorting PET because he doesn't think they will find any oil in Jordan. His reasoning (and something Simon Self was banging on about in January) is because Anadarko didn't find anything there when they had the licence in the 1990s. Gas was not economically viable at that time as the excerpt from Anadarko's report shows, and would not have been something they would have pursued after study of the seismics.

Only 1 well has ever been drilled on the E Safawi block, it was initially drilled by FINA in 1990, then revisited by Anadarko in 1997 and drilled to a deeper depth in the hope of finding oil. Gas wasn't of any intrest at the time, Anadarko were looking for oil in E Safawi.

So with the Risha gas field adjacent, gas now an economic option, and 8000 sq km more area to explore why would anyone base there shorting investment on 1 failed well?

I have provided all of the links to the relevant information, I invite any of the shorters to provide me with links to information showing any contrary facts to support their theory on Jordan.

I actually spent about 20 minutes researching the following information it wasn't hard to find.

This is from Anadarko 2000 Annual Report.
================================
Natural gas made an astonishing comeback in 2000. Following a deep and painful crash in early 1998, prices soared in the fall of last year to their highest levels ever. The reasons for this sharp and sustained rebound are many. Underlying them all is the fact that clean-burning natural gas is now the energy of choice to fuel electricity plants that are being built on the heels of a decade-long economic
boom. The result is unprecedented growth in demand for natural gas.

P9

Seems all they have done on PETs licence is to revisit an existing well looking for oil at deeper depths.
==========================================================================

History of oil exploration in Jordan

Anadarko (1996-1999)

The company deepened well QA-1 Re., in Safawi block (Basalt Plateau)

Safawi -104 Qitar abed - 1 QA-1 Fina Jun. 1990 2923 Perm. Dry
Safawi -104 Qitar Abed - 1 QA-1 Re. Anadarko Nov. 1997 4016 Cambr/ord Dry

RNS Number:2191R
Petrel Resources PLC
13 September 2005


EXPLORATION BLOCK IN JORDAN

Petrel, the aim listed Middle East oil explorer, (PET) is pleased to announce
that it has reached agreement with the Jordanian authorities (Natural Resources
Authority) on a Production Sharing Agreement on the East Safawi Block in eastern
Jordan. East Safawi borders Saudia Arabia, Syria and the gas producing Jordanian
Risha field, near Iraq. The agreed work programme includes seismic and wells.
There are both oil and gas plays. The agreement is subject to Parliamentary
approval and Royal assent.

David Horgan, Managing Director, commented

"We are delighted to have reached agreement with the Jordanian authorities to
explore for oil and gas in East Safawi. There is growing realisation that Jordan
offers good prospects for significant hydrocarbon discoveries.

Coming on the heels of the award of the Iraqi contract on Subba and Luhais, the
East Safawi agreement is a further tribute to the skill and tenacity of our
exploration team in the Middle East."

The long awaited news that took us all by surprise 7th September 2005

RNS Number:9657Q
Petrel Resources PLC
07 September 2005


SHAREHOLDER UPDATE


The Iraqi Ministry of Oil has informed Petrel Resources that Petrel has been
awarded the Subba and Luhais oil field development service contract. The project
is to develop existing proven reserves as contractor to the Ministry of Oil. The
contract envisages daily production of 200,000 barrels of oil and 100 million
cubic feet of gas.

John Teeling, Chairman, said "We are absolutely delighted to be successful in
the tender for Subba and Luhais. I hope that this is only the beginning of a
long and fruitful partnership between the Iraqi oil industry and Petrel.
Congratulations and thanks are due to David Horgan, Mahmoud Ahmed and their team
for their years of dedicated work."

David Horgan, Managing Director, commented "The contract for $197 million, is to
develop the Sabba and Luhais fields from under 50,000 barrels of oil to over
200,000 barrels of oil daily within a three year period."


24 July 2005
Petrel extends business in Iraq

Petrel is in discussions to extend its area of exploration interest in Iraq; any new acreage will be under the transitional Technical Cooperation Agreement developed by the Iraqi Ministry of Oil while the Iraqi government determines future energy policy, the managing director stated at a July 22 meeting in Dublin.

This week Petrel engineers submitted detailed technical clarifications on the Kormor Gas Project tender in northern Iraq to the Ministry of Oil.

"We understand that Iraqi Ministry of Oil officials are satisfied with technical and commercial clarifications to our Subba & Luhais oil field development tender of late 2004. Last week we signed a Memorandum of Understanding with GE on the Subba & Luhais project."

The director stated that Subba & Luhais remains their priority oil project since 1999. They are continuing to conduct regional work on Western Desert Block 6 and neighboring areas. "...We remain committed to expand our Iraqi activities."

All resolutions were passed at the meeting.

According to last month's statement by Petrel Chairman John Teeling, the company is strengthening in Iraq.

"We have had a presence in Baghdad for years and have negotiated with the Iraqi Oil Ministry on both exploration and development contracts...We continue to be encouraged by the Oil Ministry to submit tenders for new projects," Teeling said.

Teeling said that Petrel's future lies in the Middle East. "Iraq will play a central role in the growth of an oil supply desperately needed to fuel the world economic machine. The new Iraq is having a difficult birth but progress is being made. There is now a government and the rule of law is returning at least to certain parts of the country. A stable prosperous future for Iraq mandates the development of their vast oil resources."

Teeling continued: "Petrel, by maintaining a presence in Iraq, by continuing to submit tenders and through ongoing work on the exploration potential of Block 6 is showing our commitment to the country. Every passing year tightens the oil supply/demand balance making development of Iraqi oil more critical for world consumers. We remain confident that we will have a role to play in this development."



July 22,2005

The following statement was made by the Managing Director at the AGM, Dublin, 12 Noon July 22nd 2005


Petrel is in discussions to extend its area of exploration interest in Iraq. Any
new acreage will be under the transitional Technical Cooperation Agreement
developed by the Iraqi Ministry of Oil, while the new elected government
determines future energy policy.

Petrel's study of the East Safawi block in Jordan close to the Iraqi border has
been positive. We are moving to the next stage by deepening our analysis and
negotiating a Production Sharing Agreement with the Jordanian authorities. Once
a satisfactory agreement is in place a work programme will commence. This
programme is likely to include seismic and one or more wells once we are
satisfied with drilling locations.

Our partners, including many of the world's premier suppliers, continue to give
excellent support. This week Petrel engineers submitted detailed technical
clarifications on the Kormor Gas Project tender in northern Iraq to the Ministry
of Oil.

We understand that Iraqi Ministry of Oil officials are satisfied with technical
and commercial clarifications to our Subba & Luhais oil field development tender
of late 2004. Last week we signed a Memorandum of Understanding with GE on the
Subba & Luhais project. Both the Kormor and Subba & Luhais projects are in
relatively stable areas where it is still possible to work. It is not practical
to work in the central and western region presently.

Petrel has received, despite requests, no official confirmation of the awards of
Hamrin and Khurmala projects. Based on industry sources and media reports, we
assume these are gone.

Subba & Luhais remains our priority oil project, as it has been since 1999. We
continue to conduct regional work on Western Desert Block 6 and neighbouring
areas. Despite security challenges, we remain committed to expand our Iraqi
activities.

All resolutions were passed at the meeting.

Paper presented by David Horgan at the Cambridge Energy Research Associates conference in Istanbul on 29th June 2005

How can Iraq increase production?

Iraq's Ministry of Oil is composed of great people: they are brave, smart and hard working.

But they were given an impossible task: they lack physical security and a clear legal framework.

They have suffered under leadership that doesn't understand their industry and made decisions for political, rather than strictly commercial or technical reasons. They laboured for 13 years under ruinous sanctions - cynically maintained and administered irrespective of the impact on ordinary people - not to mention declared and undeclared wars. It is no surprise that oil exports collapsed from circa 3 million barrels daily pre-war (including smuggled barrels) to officially 1.5 (and probably less) today.

Their problem is how to develop an industry without being shot - by any of the factions - as collaborators? The investment required is circa $100 billion to equal Saudi Arabia's production of circa 9 million barrels daily. They lack the cash, the people and much of the up-to-date technology (through no fault of Ministry officials) to achieve this. A crash programme to boost production would step on many sensitive toes.

They cannot yet borrow money because the Paris Club deal on pre-2003 debt has not been implemented. They must work out financing options that generate the cash and technology needed to power development now. Major buyers, especially in the Far East would fund developments with long term crude purchase contracts - but this requires legal certainty. At the moment Iraq is 98% exposed to the variability of the crude oil price. It makes sense to reduce this dependence by locking a price in, at least for some portion of future production. If they are bullish on the oil price (which future markets do not give credit for), a combination of collar and cap could be negotiated.

But the critical exposure is the risk of development being long delayed. Oil reserves have become more valuable. But reserves in the ground cannot fund clean water, power, social services and the basic security people needs. Reserves must be brought into production.

Sadly, the systems Ministry officials inherited do not expedite development, reduce systems costs and risks. They do not serve the interests of Iraqi citizens well:

Presently tenderers are given very prescriptive specifications which often don't take account of the best technology and solutions now available. This reflects relative isolation since 1990 and over-work since 2003. Engineers are keen to update their skills and quickly grasp new possibilities. But state-of-the-art solutions (such as modular packages on standard rails that can be assembled remotely and quickly slotted together) are more costly than traditional approaches such as delivering equipment piecemeal. You trade the higher capital cost off against speed of installation, higher productivity, quality problems avoided. Sometimes the system cost of the modern solution is actually lower, but this may not be reflected in the tender if the construction is not part of the contract.

The rational solution is to expedite construction by all proper means even if this involves cutting corners. Every barrel lost is over $50 of foregone revenue. Tendering systems designed for normal conditions of peaceful stability are not ideal for prevailing circumstances in Iraq.

The task is so great that it seems beyond the current number of internal Ministry staff available, particularly when so many qualified professionals have emigrated or must spend part of their normal day attending to family security needs.

So the Iraqi authorities must farm out much of the development work. There aren't enough locals - or even Arabs - of the required background, so they must work with foreign contractors.

How to reward and motivate the contractors? Straight service contracts give insufficient incentive to achieve the quickest development at the lowest system cost - much less maximum value. You have no incentive to boost production - indeed you may have reasons to act in ways that cut production or reduce quality because that would reduce the size of your bid and make it easiest to meet specification.

Foreign executives with big companies and without much direct Iraqi experience are diffident about the exciting but challenging Iraqi project. For them, it is only a job. They switch off when they leave the country. When they hear about a no-warning bomb they do not strain to discover the location. Their hearts do not quicken in the fear that a friend is hurt.

This thinking permeates their thinking and approach: they tend to withhold senior (especially non-Arab) personnel and over-rely on mercenaries to achieve security. Military personnel do not always understand or respect local sensitivities.

The capital and skills are available but they require a risk-adjusted return. The pre-2003 Iraqi model contract envisaged an internal rate of return of roughly 20% for exploration and development contracts - with somewhat less for straight development with limited geological risk. Sadly risks have increased to the point where these returns are not sufficient for most players.

There is as yet no legal framework. Nor will there be a framework generally accepted as legitimate until Iraqis have real control of their destiny and real - as opposed to theoretical - sovereignty. This requires a constitution approved by the majority of people, real elections in which at least 50% of the major ethnic groups participate and a more genuinely independent government not dependent on foreigners.

What makes theoretical sense also makes practical sense. There won't be peace and development of Iraq's potential until the main ethnic groups see that independence has been restored. You can't have democracy without freedom. The sanctions and wars have not done a good job for ordinary Iraqis, the region or oil consumers worldwide. It will be difficult to cram the genie back in the bottle. One hopes that our political masters do not make similar mistakes with Iran or Syria.

In the meantime anyone interested in working in Iraq must be pragmatic. It's a fluid situation. Our focus was initially on exploration. The opportunity to tender on oil field development tenders arose, and we seized it. Maybe tenders will go to very low bidders provided solutions inferior to those we propose. We hope the authorities will opt for more imaginative solutions. Maybe a future government will entertain the possibility of converting such contracts to risk-sharing arrangements. It would be in everyone's interests - but it is uncertain.

Petrel was not interested in Technical Cooperation Agreements in 2003 because we were working flat-out on remote exploration in the western desert and preparing tenders for oil field development service contracts. You can't do everything and juniors must focus. But as time passes with continuing uncertainty we changed our minds.

No one should get involved with Iraq or anywhere else in the region - for a quick buck. This is a decade long - if not 20 year - project.

But Iraq has the oil - particularly the conventional oil - that consumers crave. It is unexplored and has excellent prospects both at greater depth in existing field and in frontier areas like the upper Euphrates and western desert. Security risks are high but geological risks low. Iraq is practically unexplored - with only about 2,300 in an area the size of Texas (which has a million wells, including many at depth).

Majors will not effectively operate in Iraq for years to come. They will conduct desk studies and training courses from western capitals - but they will not conduct meaningful work to boost production.

So the Ministry must work with people who will work with it - under prevailing circumstances. Rules should be worked out pragmatically to motivate behaviour Iraq needs: fast development of oil projects.

Between the elections in January 2005 and appointment of the oil minister in May 2005, little progress was made. The electoral performance of the outgoing government hamstrung existing decision-makers - while the successful players struggled to agree on the formation of a government. The oil portfolio was one of the most sensitive. In June 2005 the Iraqi authorities were considering the status of pre-war contracts. But the wide range of public and private comments suggests that policy will take some time to become concrete.

Uncertainty will continue till end 2006 at the earliest. If you wait till there is legal and physical security you will have left it too late. It is the place and the time - but Iraq is not for faint hearts.

David Horgan
Petrel Resources
29th June 2005



June 22,2005

Highlights of the Chairman's Statement accompanying the results year end 2004

* Petrel maintains an ongoing presence in Baghdad.

* A fourth oil field development tender for the Kormor field, submitted
in April 2005.

* Technical clarification completed on the Subba and Luhais tender
submitted in 2004. We await a decision.

* Continued development of our exploration model for Block 6 in the
Western Desert of Iraq.

* Positive indicators from an initial study of the East Safawi Block in
Jordan, close to the Iraq border.

* Fundraising of #1 million at 43p a share in March 2005.

We continue to be encouraged by the Oil Ministry to submit tenders for new
projects. In April 2005, we submitted a multi volume tender to develop the
Kormor field in Kirkuk.

While awaiting decisions on our tenders we have been active in refining our
knowledge and understanding of Block 6 - the 10,000 sq km exploration block in
the Western Desert. We have identified very large structures on the block which
need to be drilled. We are ready to commence geochemical and seismic programmes
once the go ahead is given.

Where we have made real progress is in Jordan. Our initial interest in the
Jordanian acreage was to improve our knowledge of the Western Desert but the
more we looked at the data the more prospective the project became. We now
believe that there are drillable plays on the block. Petrel holds a Memorandum
of Understanding on an area covering 8,750 sq kms west of the Risha gas field.
We are completing structural studies as well as re-interpreting 4,350 km of
seismic. It is likely that the concession will be upgraded to an Exploration
and Production Sharing agreement.


June 14,2005

Iraq Unveils 10-year, Multi-Billion-Dollar Plan to Boost Oil Output

Iraq has announced an ambitious 10-year plan to triple oil production to 6 million barrels per day by 2015, saying it will need $20 billion in foreign investment to boost output.

NK Al-Bayati, director-general of Iraq's Oil Ministry, told the Asia Oil and Gas conference: "We have a 10-year broad plan. Our expansion philosophy is to try to replace depleted production volume and add to our national reserves."

Al-Bayati said the increase in output from the current level of 1.8 million barrels per day (bpd) would be done in two phases.

Under the first phase, oil production would increase to 3.5 million bpd to 4 million bpd in 2010, and 5.5 million bpd to 6 million bpd by 2015, he said in an address to about 1200 delegates.

Al-Bayati said Iraq was optimistic it would be able to achieve the target despite the ongoing violence in which oil pipelines were also targets.

"We are very optimistic. We have to be. We have no alternative," he said. "God willing the money will come."

Al-Bayati said Iraq would try to borrow from the world community and invite international oil companies to modernise its oil industry.

"We hope the foreign oil companies will help us achieve our goals in these difficult times," he said.

World's second-largest reserves

Iraq has the world's second-largest proven reserves at about 115 billion barrels, but production has been sharply reduced by war and more than a decade of UN sanctions.

The battered oil sector also is being targeted by fighters opposed to US-led forces.

"I think any oil and gas players cannot ignore Iraq"

Hassan Marican,
Petronas president

Al-Bayati said that to boost output and woo international investors and oil companies, Iraq needed to ensure security, put in place a legal framework and formulate national oil policy.

"Hopefully this (when in place) will help regain international confidence in Iraq. Iraq will become a new hot spot in the Middle East for oil production," he said.

Al-Bayati said some international oil companies such as Malaysia's Petronas were exploring the prospect of drilling for oil in Iraq.

"Oil companies have a huge role to play. We have a long association with Petronas. We discussed with them cooperating on a block in the western desert. We discussed with them the development of one of the giant fields in the Basra region in the south," he said.

Keen investors

Petronas president Hassan Marican said on Monday that the national oil firm was keen to invest in the upstream oil and gas business in Iraq.

"I think any oil and gas players cannot ignore Iraq," he said, adding that discussions were ongoing.

But not all other international oil companies are expected to rush to Iraq.

Richi Kruger, vice-president Asia-Pacific/Middle East for ExxonMobil Production, said the major factor for foreign oil companies would be whether the confidence and safety of workers could be ensured.

"On the political side, we have to have confidence in the sanctity of the contract," he said.



June 3, 2005

BLT has a BLT for lunch

May 17, 2005

Chalabi appointed to head energy council

Deputy Prime Minister Ahmad Chalabi has been appointed to head a newly created board to oversee the oil-producing country's energy policy, a senior government official said yesterday.

"The Energy Council is headed by Dr. Ahmad Chalabi and comprises cabinet members to oversee Iraq's natural resources," Finance Minister Ali Allawi, who is a member of the newly appointed Council, told Reuters by telephone from Baghdad.

A senior aide to Chalabi confirmed his appointment to the Energy Council.

The Council will be similar to the Oil and Gas Council set up by the previous pre-election government but will also include the electricity and water sectors, Allawi said.

Chalabi is a vocal advocate of the free market and the need to attract international companies to develop Iraq's 112 billion barrels of reserves, third after Saudi Arabia and Iran.

He has long favoured giving priority to US and British firms in the Iraqi oil sector for their government's role in toppling Saddam Hussein, but he has not made public comments on the issue lately.
His appointment to the Council, which will have large influence over approving foreign investment deals needed to expand production, is another step in the resurgence of the former financier, whose career has been marked by controversy.

Ahmad Chalabi said in remarks published yesterday that he rejected a royal amnesty as a way to resolve a fraud conviction against him in Jordan.

"A pardon means I'm guilty, but what I'm seeking is another trial in a civil court and in accordance with the Jordanian law," Chalabi told Ad-Dustour, Jordan's second largest daily newspaper.

Chalabi, who was appointed a deputy prime minister in the Iraqi government that took office in early May, was convicted in absentia in 1992 by a Jordanian military court of embezzlement, fraud and breach of trust after a bank he ran collapsed with about $300 million in missing deposits.





PDF explaining the mechanics of PSA agreements



Thread Objectives
This board is for discussing Petrel Resources and any news directly associated to it, the projects in Iraq or the oil industry. If you wish to discuss Politics, War, Terrorism, Current Events etc take it somewhere else! However good humoured banter, the odd bit of sarcasm, and uplifting news is most welcomed.

WARNING!
Any newcomers to the thread please be aware that Simon Self is a very odd character indeed and cannot always be taken seriously

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Fatgreek - 21 Dec'06 - 14:28 - 56059 of 56063


wakey wakey PET!!!

AJJ2003 - 21 Dec'06 - 14:32 - 56060 of 56063


How are your blue lights doing FG?

3windy - 21 Dec'06 - 14:33 - 56061 of 56063 edit


ANYONE THINK WE`LL SEE A RISE WHEN US STARTS TRADING?

seatrader - 21 Dec'06 - 14:41 - 56062 of 56063


How about when Japan start trading

AJJ2003 - 21 Dec'06 - 14:44 - 56063 of 56063


Just a thought, not an ethical one mind but if you were Itochu, wouldn't you try to build a stake in your partner, just to safeguard your interests? Would make sense, especially long term if the partnership prospers.

Any comments.

would make sense.They would have to make it known if they were building a stake though,wouldnt they?