Exploration firm Petrel Resources says it remains focused on Iraq and is prepared for any difficulties due to tensions in the Middle East.
Speaking at the firm's AGM today MD David Horgan said the $197m Subba & Luhais contract in southern Iraq is on track with no big security problems.
He said that tensions in the Middle East have created problems - but that Petrel are prepared and are better positioned than other western companies.
He added that International groups are interested in partnering with the exploration company and that record oil prices increase the potential of Petrel's investment.
The Subba & Luhais contract is the biggest contract awarded by the Iraqi Ministry of Oil since 2003.
Mr Horgan said that now a fully sovereign government has taken office a priority is to review the Hydrocarbon Law, establishing the basis for foreign participation in Iraqi oil & gas.
In 2005 Petrel signed a technical cooperation agreement on the Merjan oil field, in central Iraq, with the Ministry of oil.
The oil field was discovered in 1983, but has not yet been brought into production because of extraneous circumstances, including OPEC ceilings.
Mr Horgan said that a work programme on the oil field kicked off in May and that it hopes a study is completed at the end of the year.
