PETROCELTIC (PCI):CHART AND DISCUSSION THREAD (moderated)

Cheers Vav,

Right or wrong, thats what was needed, proper debate on the subject.

re your points:

1. If they do change the contract to 49% for a commercial viable project its still a very good deal especially as it is compatible with other countries % take and nothing out of the ordinary.

I agree

2. The information does not come from an official Government announcement.

I agree

3. Contracts are signed under international law and as such any changes have to be ratified and when required compensation paid.
( Ref Bolivia 2006 oil companies take Government to court. )

I am not sure I do agree here, it may be that compensation may be payable, bit it could be drawn out, require funds, legal action doesnt necessarily help a share price due to uncertainty of costs and outcome, and Im not sure compo is always payable - presumably algerian govt may just use its leverage to force through a compromise deal of some kind, and if agreed by the company, no compo to pay...

4. Normally old contracts operate until their time is up.

if laws change, then they can not only come into force from that date but also be retrospective


5. At the moment I am only a bystander but there does need to be some clarification on the matter and my view . ( 49% is not a bad deal. )

I agree

regards, and no advice intended,

RoL
>>>>>-------------------------------->