Petrel gets Iraq extension, ready for deal

Feb. 21, 2008 at 6:39 PM
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BAGHDAD, Feb. 21 (UPI) -- Ireland's Petrel Resources has received a one-year extension on its Iraq oil project and has registered for future deals, the company said.

The extension is in relation to the agreement to provide training and technology to Iraq's Oil Ministry for the Marjan oil field.

It is also moving forward on a project to assist the Iraqi State Co. for Oil Projects in developing the Subba & Luhais fields in southern Iraq. Petrel's contract, signed in 2005, is a $197 million deal to help engineer, procure equipment and supervise construction of the fields' expected oil and natural gas production.

The Oil Ministry is expected to offer more contracts for bid later this year and gave Feb. 18 as a deadline to register for qualification, which the company said it did.

"We are very pleased to have begun the process which will see us moving from managing technical studies and EPC projects to becoming a fully fledged exploration and production operation," said David Horgan, Petrel managing director. "Our longstanding experience in Iraq will give us vital first mover and technical advantage over competitors."

The company, which touts its work being done with little security incidents, expects an invite to discuss opportunities to develop the Western Desert Block 6. It has studied it since 2000, but deals with Saddam Hussein aren't guaranteed to be honored.

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