Naftoil Joins Gulf Regal in Securing Exploration Rights in Mauritania

Naftoil Saudi Arabia S.A. has teamed up with Gulf Regal to sign an outline memorandum of understanding that secures drilling, exploration, and development rights in two high-prospect blocks in the Islamic Republic of Mauritania. The first block is located on the coast and the second inland. Initial geological reviews suggest that both blocks offer high potential for commercial exploitation.

Included in the deal is the building of a new refinery that will handle local and imported feedstock. Initial capacity will be around 100,000 barrels per day. This will represent a huge increase in refined output and turn Mauritania into a net exporter of refined petroleum products.

Naftoil Saudi Arabia S.A. is in early-stage discussions with a leading Chinese player who will act as a partner in building and operating this new refinery.

The initial year-one investment is expected to be in excess of 3 billion US dollars.

The deal was signed by Sheikh Solaiman Bin Abdulaziz Alkuhaimi, chairman of the board of Naftoil Saudi Arabia S.A. and Mr. Hani Salaam, president of Gulf Regal Corporation.

This development represents an exciting development in the commercialization of Mauritania's oil reserves.