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Iraq Remains Biggest Oil Opportunity, Says Petrel Resources – Commodity Commentary

By on September 22, 2021 0

By Jaime Llinares Taboada

Iraq remains the biggest oil opportunity today, according to Petrel Resources. The London-listed company, which submitted a proposal to develop an oilfield last year, says the biggest challenge in the country is the obsolescence of contracts and tax conditions. Here’s what Petrel had to say when releasing the first half accounts:

On the Iraqi oil market:

“Despite the high-profile challenges, Iraq remains today the greatest business opportunity for oil. The geology is unmatched. The oil market is recovering sharply. But contracts must be updated for effective exploration and development . “

“2021 has been a moment of truth for companies willing to invest in Iraq. Some Western majors, unaware of the circumstances at the time, made overly optimistic offers on service contracts from 2009 onwards, then struggled to operate effectively.

“Others, including TotalEnergies and the Chinese NOCs, have re-enlisted given the great opportunity. Iraq is not for the faint of heart, but there are considerable benefits to be realized provided the elected government implement the necessary reforms. “

“For several years after the Iraqi invasion of 2003, it was felt that entrepreneurs close to Western governments, and later super-majors, would dominate Iraqi oil exploration and development. The Iraqis, however, had other ideas: they wanted partners rather than bosses. “

“The biggest challenge Petrel faces in this new era is not operating conditions, access to technology or community relations. The biggest challenge facing players in the agile industry are the obsolete contracts and fiscal conditions that were designed during the boom years. “

On Petrel’s operations in Iraq:

“Petrel was also asked, by an Iraqi group, to assess mining opportunities that could become economically and legally viable following the expected passage of the legislation.”

“At the invitation of Iraqi government officials in 2020, Petrel submitted a proposal to develop the Merjan oil field, in accordance with applicable laws and the Iraqi model contract. This is based on the Technical Cooperation Agreement (ACT), led by Petrel at 50%. cooperation with partner Itochu, from 2004. “

“Petrel maintains relations with officials of the Ministry of Petroleum, despite the constraints of Covid-19.”

Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT

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