By John Lee.
Irish-based Petrel Resources Plc (LON: PET) has published its consolidated financial statements for the year ended 31st December 2024.
The company's accounts show no assets or liabilities in Iraq. It adds:
"Title to oil and gas assets in Ghana and Iraq can be complex. The Group is currently awaiting ratification of its licenses in Ghana and Iraq."
Regarding prospects in Iraq, the company said:
"An early opportunity may lie in projects to recover and monetise flared gas with contained liquids in southern Iraqi oil-fields. Petrel had made such proposals from 2004 through 2009 on the Subba & Luhais fields, on which we were the EPC (Engineering, Procurement & supervision of Construction) Operator. At that time our client (SCOP) [State Company for Oil Projects] was unable to sign such an agreement for legal reasons - even though it would have substantially reduced their development costs. However, we believe that some or all of the bureaucratic barriers may now have been overcome.
"There has been a recent site visit and early discussion with the authorities by an experienced regional services provider, which has successfully conducted such operations elsewhere.
"We had excellent relations with the local communities, and had negligible security issues when working there previously. It's too early to be sure how such contracts would be structured.
"The Merjan oil field was discovered in 1983 by Mobil, but though economic, never developed due to the sub-economic terms available. From 2004, Petrel was invited by the Ministry of Oil to study how best this discovery could be proven up and brought into production. For best results, such smaller Iraqi fields should be developed under enhanced fiscal terms, to best align the interests of capital providers, operators and the Iraqi State. An updated development proposal was accordingly prepared to reflect financial reality and evolving Ministry guidelines.
"During 2024, Petrel was asked by the Ministry of Foreign Affairs in Iraq for its proposals on how Iraqi oil & gas exports could be de-bottlenecked and boosted. There is considerable scope to improve Iraqi market access, adding value to Iraqi people."
(Source: Petrel Resources)
A few quick remarks are worthy making on this update by Petrel Resources Co.-PRC
First, as data revels, PRC had very limited presence in Iraq upstream petroleum, mainly through 1- one memorandum of Cooperation-MoC, with the Ministry of Oil-MoO 2005/8. The aims of the MoC mainly include undertaking one joint technical study each by 9 Iraqi specialists and PRC concerning Murjan and Dhfruiya oilfields. 2- EPC contract relating to Subba & Luhais fields.
Murjan, Subba & Luhais are developing by the Iraqi “National Effort”, while Dhfruiya was awarded to the Chinese Anton Co. during the (5th+) and 6th licensing round of May 2024. PRC recent claim regarding Murjan oilfield worth investigation, but PRC needs to provide more details and verifiable evidence on it.
PRC was not qualified and, thus, did not participate in any bid rounds of the MoO.
Almost 12 years ago I wrote a commentary on previous claims made by PRC.*
Second, PRC new claim regarding oil and gas marketing.
There are many issues in this new claim:
I- Oil international marketing is a sole responsibility of SOMO. Over 50 years of experience, SOMO developed a well, professional, systemic framework and expertise. It has elaborated contracting modalities with expanding number of known international oil buyers-IOBs. Its oil pricing mechanism is rather complex, through metrics comprising many variables depending on the quality of the crude, market-related marker crude, the market destination, the mode of contracting, export outlets and the periodic/monthly premium or discount, among others.
Hence, SOMO dose not need PRC service, let alone the later has any experience, or even knowledge, in marketing Iraqi oil!!
Regarding “gas marketing”, this is rather ironic; Iraq has been and still is facing gas shortage and thus import gas to face its needs, while associated gas flaring continues unabated. Hence, gas export is a far-fetched, and above all PRC has absolutely no experience in marketing gas in any form; pipeline or LNG!!!
II- The Iraqi Ministry of Foreign Affairs-MoFA has no constitutional authority on oil and gas matters in the manner PRC has claimed. Hence, there is a credibility issue that PRC should clarify by providing full, clear, formal and verifiable evidence to support what it has claimed.
I find it important to raise the matter with the directly related formal entities in Iraq, mainly MoO, SOMO, and MoFA, and other entities. Moreover, it is vital to alert the authorities and the public on similar claims by small foreign companies that they have agreement with this or that local authority.
Ahmed Mousa Jiyad,
Development Consultancy & Research,
Norway.
27 June 2025
*http://www.oilvoice.com/n/Petrel_Resources_announces_acquisition_of_20_shareholding_in_Amira_Hydrocarbons_Wasit_BV/da6b931ccc5d.aspx and posted on IBN website on 15 August http://www.iraq-businessnews.com/2013/08/14/petrel-jumps-on-iraq-acquisition/