Petrel’s Iraqi oil field contract ‘on track’

PETREL Resources has said its $200 million (€157.53m) contract to rebuild an oil field in southern Iraq is on track and the exploration company is also in the running to develop additional fields.

At the company’s annual general meeting in Dublin yesterday, managing director David Horgan said Petrel was hopeful of securing the rights to develop the Merjan oil field in central Iraq. This area is known to have a huge level of oil reserves, potentially up to 16 billion barrels.

Mr Horgan told Petrel shareholders that after years of patience, the company was one of just a handful to be awarded major contracts.

“The commitment of industry players to Iraqi oil development has been tested. Most have folded. We continue to expand and deepen our involvement. What others see as difficulty, we see as opportunity.”

Mr Horgan said the rising tension in the Middle East have created problems for the company.

“But they are difficulties we prepared for and are better positioned for than are other western companies. We expected recent events and anticipate further challenges.”

Petrel said it was still waiting on the Iraqi Government to sign a new hydrocarbon law, which will establish the basis for foreign companies to participate in Iraqi oil and gas field development.

“Petrel is well placed to seize the opportunities which will open up,” Mr Horgan said.