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

NOTE: All new contracts give Sonotrach the right to a minimum 51% stake..

New contracts are changes to original contracts..see post below..


Bronco Lane - 3 Jan'07 - 16:06 - 11790 of 11804 edit

Not sure about that French post from Robin..possibly only outlining the governments stance when this new Law in full kicks in..[taxation already has kicked in and is being backdated to August last year]..

Regarding the current PSC's then I will side with what the other poster said..

Basically it is that those companies that are already under the 'exploitation contract' [normally 30 years] will not be affected unless they decide to sell or farmout their stake..in which case this will require a new contract and the 51% to Sonotrach will kick in..so sit tight and you will be OK is the order of the day...

In the case of PCI they are at present not effected and nor will they be when the new Law kicks in UNLESS they do a JV or some sort of deal with another company because this will constitute as a new contract and Sonotrach will then be able to take up 51%..BUT unfortunately it is a no win situation for PCI because they are in the 'exploration stage' and this expires in 2010 to which a NEW contract must be signed [or PCI rescind] giving Sonotrach the right to 51%..The new contract would be the 'exploitation contract' good for up to 30 years..

Bronco....

All new contracts give Sonotrach the right to 51% and PCI have no choice but to accept a new contract or rescind..