26 April 2010 - Upstreamonline.com
London-listed Petrel Resources said its Iraqi partner, Makman, will assume the responsibility for the final phases of work at the Subba & Luhais oilfield development in southern Iraq.
Mobilisation for the project, which has been in suspension for 20 months, will begin shortly, Petrel said.
The transfer of responsibility is in line with a joint venture agreement between Petrel and Makman for the oilfield development.
In return, Petrel will receive $7 million, of which the first $2 million has been paid up, and the remaining $5 million will be issued in two tranches over 12 months.
Petrel will also receive a 10% profit interest in exchange for surrendering a 50% stake in the oilfield.
The Iraqi authorities have put in place a new letter of credit for the balance of the contract.
The UK player plans to focus on growing its exploration interests in Iraq.