|
Finance News ([EMAIL PROTECTED]) thought you might be interested in this Business report. Woodside shares plummetBy Mandi Zonneveldt
04-02-2006
From: Herald Sun
WOODSIDE Petroleum shares took a dive yesterday after the company revealed it was in dispute with the government of Mauritania over production sharing contracts. Jittery investors dumped the stock on concern the company's revenue would be hit, sending its shares $1.50 lower to $43.85.The dispute relates to amendments to four offshore contracts which became law before the Mauritanian government was ousted in a coup last August. The affected areas house the Tevet, Tiof and Banda oil discoveries, but Woodside's Chinguetti development is not under threat. Woodside spokesman Niegel Grazia said the Chinguetti field, which is due to produce its first oil this month, was in an exclusive exploitation area. He said the company had no reason to believe the dispute would affect its production or revenue. Woodside's Australian partners in Mauritania, Hardman Resources and Roc Oil, also took a hit yesterday. With oil trading at a three-week low, Hardman shares fell 9.5c to $1.925 while Roc Oil lost 16c to $2.98. Woodside said yesterday it was in discussions with the Mauritanian government to resolve the dispute. "Woodside is confident that the amendments are proper, valid and binding on all parties," the company said in a statement. The dispute resolution process could take up to three months. The dispute is not the first difficulty Woodside has faced since the Mauritanian coup. Zeidane Ould Hmeida, Mauritania's energy minister before the coup, is to be tried on corruption charges relating to contracts he negotiated with foreign companies over oil developments. In a January statement, the company defended its relationship with the former Mauritanian government. "Woodside . . . as operator of several local production sharing contracts (PSCs) is continuously and routinely engaged in discussions with the Mauritanian Government on behalf of its joint venture participants," it said. "Such discussions are common in the oil and gas industry as joint ventures move from early stage exploration to production and often involve amendments and clarifications to PSCs."
|
_______________________________________________ M-net mailing list [email protected] http://mauritanie-net.com/mailman/listinfo/m-net_mauritanie-net.com
