€114m Write-Off Expected at Petroceltic

By John Lee.

Analysts expect Dublin-based Petroceltic International to incur a write-off of just under €114 million ($125 million; 146 billion Iraqi dinars) as a result of abandoning its operations in Iraqi Kurdistan.

According to a report from the Irish Independent, it is also expected to take a cash cost hit of about €6.4 million ($7 million; 8.1 billion Iraqi dinars) associated with the demobilisation of the project.

Brian O’Cathain, Chief Executive of Petroceltic, told the newspaper:

"Obviously we would have preferred to drill on target in the time that was available and we are disappointed but a lot has changed [such as] oil prices and the political situation in Kurdistan.

"The write-off is significant and we would much prefer not to be making write offs, we would prefer to be doing developments but it is a non-cash cost so in terms of future exposure it is better to take a hit rather than continue with something that would have made no economic sense."

(Source: Irish Independent)