By John Lee.
Irish-based Petrel Resources last week issued an unaudited interim statement for the six months ended 30 June 2024.
The company, which last year submitted an updated development proposal for the Merjan oil field to Itaq's Ministry of Oil, with a view to finalising a licence agreement, said:
"... the fiscal terms available from most states reflect those which became normal during times of better market conditions (2004 - 2014), but are sub-optimal for explorers.
"Many producing countries, including Iraq, are now talking about improved fiscal terms, but these have not yet been implemented.
"As a result, most successful bidders in international bid-rounds tend to be State Oil Companies, or in some cases majors with excess cash - often bidding uneconomic fiscal terms."
Responding to a question from Iraq Business News, Chairman David Horgan clarified:
"The current economic terms on offer [in Iraq] are not fundable for developers reliant on stock markets, hence the dominance of state-backed Chinese companies and local contractors in recent bid rounds."
(Source: Petrel Resources)
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