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Petrel Resources “disappointed” by Iraqi oil licensing round outcome
Petrel Resources (LON:PET) announced today it has not achieved qualification to participate in the 4th oil licensing round in Iraq. The company says the eventual criteria adopted by the Iraqi authorities for the round “were heavily weighted towards financial size and strength rather than practical experience working in Iraqi conditions”.
As a result of the criteria used by Iraqi authorities, no juniors or smaller independent oil companies have been qualified for the bid rounds, Petrel adds.
The qualified list for round, in contrast, includes the oil & gas super-majors, many national oil companies and some large international oil & gas independent oil companies.
Petrel says it will continue direct discussions on its existing interest in Western Desert Block 6. It will also seek direct negotiations on smaller fields that have not been awarded in the bid rounds.
In the wake of the decision by the Iraqi authorities, David Horgan, managing director, noted that Petrel, as a junior oil company focused on Iraq, has worked continuously with the Iraqi Ministry of Oil since 1999.
He says: “We were disappointed not to have qualified for the current bid round process. Our application was initially well received, but the ultimate criteria were heavily weighted towards large company strengths such as financial depth, rather than technical and practical experience working on the ground in Iraq. As a result, neither Petrel nor other juniors were qualified.
“Failure to qualify is a setback but we have overcome many similar challenges since starting Iraqi work twelve years ago.
Horgan assured investors that Petrel remains well funded and ready to move once necessary approvals are for its other areas of interest in Iraq are gained.
