Petrel Resources and Itochu to Cooperate on Iraq Exploration

Petrel Resources has signed a strategic partnership and cooperation agreement with Itochu Corporation. The strategic partnership will cover future exploration and development activities in the Iraqi oil and gas industry.

Itochu is one of the largest and most respected Japanese conglomerates. Itochu launched its upstream activities in Indonesia and Sakhalin Island in the 1970s and has been a successful player in the upstream energy sector ever since through its active participation in the challenging environments of Algeria and Azerbaijan, as well as other oil producing regions such as the North Sea and Western Australia. In addition to the above-mentioned upstream activities, the Itochu group is also one of the largest traders of crude oil in the Far East and is a major force in numerous business sectors, including areas such as steel pipe supply, finance, logistic and plant businesses.

The cooperation agreement between Petrel and Itochu will initially cover work on the Merjan oil field under a Technical Cooperation Agreement with the Iraqi Ministry of Oil, subject to applicable laws. Itochu will also have a first look at future Petrel projects in the Iraqi oil & gas upstream sector.

As part of the cooperation agreement, Itochu will contribute towards Petrel's historic costs in the Iraqi oil & gas sector and will cover a fixed share of the costs of the current study.

Petrel Managing Director David Horgan welcomed the development:

'We have gotten to know Itochu well over several years. There is a near perfect fit with Petrel. Itochu, one of Japan's leading companies, with its strong balance sheet and long-term perspective, is a strong player in upstream oil and gas business. There is no better partner for us in our quest to expand and deepen our Iraqi activities."