Petroceltic Launches Legal Action over North African Deals
Oil and gas junior Petroceltic International reported Friday that it has issued legal proceedings in the High Court of Ireland against two parties connected to deals involving its North African business activities. No details were provided about the parties excepted that Petroceltic had signed services and consultancy agreements with them in 2004 and 2005.
A Petroceltic spokesman would not comment on the legal action, or the firms that Petroceltic is targeting with the action, but it appears to be a counter suit provoked by one of the parties itself seeking a payment of $3.4 million from Petroceltic.
Petroceltic said in its statement that it believes the original agreements constituted a fraud against the company and it has consequently issued legal proceedings to have these agreements declared void. The firm also seeks to recover significant payments made to the two parties in 2005 and 2006 under the original agreements.
Petroceltic – which is active in mainland Europe and the Kurdistan Region of Iraq – has operations in two countries in North Africa. In Algeria it has a production sharing contract (the Isarene PSC) that was awarded in September 2004, and which came into force in April 2005. In Egypt the firm is involved in several oil and gas production blocks, including in the onshore Nile Delta region where it holds a 100-percent interest in 12 producing fields.
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