Petrel Resources Regulatory News (PET)

6 Jan 2006 13:57

Petrel Resources PLC06 January 2006 Petrel Resources enters into Joint Venture to develop Subba & Luhais oil field Petrel Resources (AIM: PET), is pleased to announce a Joint Venture with aleading Iraqi Contracting Group, Makman Oil & Gas ("Makman"). The JV covers theSubba & Luhais oil field development services contract awarded to Petrel by theIraqi Ministry of Oil in September 2005, and formally signed in December 2005.The arrangement is subject to the approval of the Iraqi Ministry of Oil. Makman will, provide security, local transport as well as construction andengineering support. Petrel will continue to provide overall projectmanagement. Makman is part of a large Iraq commercial group. Petrel and Makman will form anew company for the purposes of the JV in which each party will have a 50%share. Under the Agreement, Makman will provide a Bank Guarantee for the 5%Performance Bond, and a further Bank Guarantee to enable the Iraqi Ministry ofOil's project company to issue a 10% advance payment to finance the project. Commenting on the Joint Venture Agreement, Petrel Managing Director David Horgansaid: 'Petrel has always been committed to working closely with Iraqis and maximisinglocal content. Our partner is Iraq's leading construction group and alreadyworking on two similar projects for the Iraqi Ministry of Oil. On recent visitsto their operations we have been impressed by their professionalism, technicalexcellence and strong local credibility. The arrangement is a major advance andhelps to integrate Petrel into the local business community'. Contacts: Petrel Resources PlcDavid Horgan +353 87 292 3500John Teeling +353 1 833 2833Jim Finn +353 1 833 2833 Bell Pottinger Corporate & FinancialNick Lambert +44 (0) 7811 358 764 Rowan DartingtonBarrie Newton +44 (0) 117 933 0011 This information is provided by RNS The company news service from the London Stock Exchange