Mauritanian Govt to Participate in Chinguetti Development

Woodside reports that the Government of the Islamic Republic of Mauritania has exercised its right to participate in the Chinguetti Oil Field development, offshore Mauritania.

The Government's participation will comprise a 12% equity position in the Exploitation Perimeter which was granted in May 2004 under the terms of the Production Sharing Contract (PSC) for Area B, via an Exclusive Exploitation Authorization (EEA). The Exploitation Perimeter was granted over an area including the Chinguetti Oil Field. The effective date of the Government's participation is 9 November 2004.

The interests of the Government of the Islamic Republic of Mauritania in the Chinguetti Oil Field will be represented by the Groupe Projet Chinguetti (GPC), an entity set up by the Government of the Islamic Republic of Mauritania for this purpose.

The right to participate and the terms of the Government's participation, including the payment of ongoing costs from the effective date to participation and reimbursement of past costs, are defined in the PSC for Area B. The specific terms of the PSC are confidential.

This election to participate is limited to the area of the current Exploitation Perimeter, and does not include the rest of PSC B. The Government has a similar right to participation in each new development in the PSC.

Participating Interests in PSC B, and participating interests (rounded to the nearest 3 decimal places) in the Chinguetti Exploitation Perimeter following Government participation are:

Company				PSC-B		Chinguetti Exploitation 								Perimeter
Woodside group companies 
(operator)				53.846%		47.384%
Hardman group companies		21.6%			19.008%
BG group companies		11.63%		10.234%
Premier group companies		9.231			8.123%
Roc Oil group companies		3.693%		3.250%
Groupe Projet Chinguetti	--			12.000%