March 02, 2003

Petrel to fight for Iraqi oil deal
Juno McEnroe



DUBLIN-BASED oil firm Petrel Resources, which claims to have made a potentially-lucrative deal with Iraqs Ministry of Oil, is threatening to sue any country or company that attempts to seize its property in the event of a regime change.
As Saddam Hussein faces further scrutiny from the international community, Petrel is insisting that, under international law, it has acquired the right to explore a 10,000 sq km area of the Iraqi western desert.Last May the Dublin group finalised a 100-page contract with the Iraqi leaders oil ministry. Saddam has yet to give his final approval to the deal.

David Horgan, managing director of Petrel Resources, said the Iraqi state is committed to a binding contract and that this will remain the case even in the event of a regime change. Everyone is looking for a piece of the action, he said. Iraq is the cornucopia of the future. The world is presently burning five barrels of oil for every one that is found.

Industry sources said last week that even though Saddam gave approval for several contracts last December, including Petrels, he is holding back releasing the news in a bid to put pressure on governments and prevent an attack on Iraq.

It is understood that Saddam does not review oil exploration contracts in full but gives his approval on the basis of a one-page summary drawn up by his close advisers.

Petrel Resources says its contract with Iraq gives the company rights and obligations under an agreed work programme for the western block as well as profits from any discoveries made.

Everyone assumes America is orientated by oil. And it is. But the last thing they expect to do is to ride into town and take over, said Horgan.

All we have to do is prove we have the land title and show the work done. These are agreed terms. If another country takes our contract, we can sue them.

Sovereign immunity does not exist in mineral concessions. It would even be possible to settle the case here in Dublin. We would skip the Iraqi administration and go straight after the relevant country.

Petrels technical specialists claim the block has the potential to produce between three and five billion barrels of oil, which is on a par with other discoveries in the region.

Saddams oil ministry continues to send Petrel Resources details of seismic data on desert blocks in western Iraq, despite the threat of war. Shares in Petrel Resources are traded in London on AIM. They dealt on Friday at 5p, valuing the company at about 2m (2.94m).

Is this the time that it heads north and stays there?.does anybody have any up to date news?.