Bula in deal to buy oil from Iraq

Bula Resources has concluded an agreement under which it will buy two million barrels of crude oil from Iraq and sell it on to a major international oil firm. The deal is subject to the approval of a committee established by the United Nations Security Council to oversee its oil-for-food programme in Iraq. The agreement stipulates that the oil be lifted from the port of Ceyhan in Turkey before May 24th, 1999.

The agreement with the unnamed oil firm purchasing the oil is already in place and will provide the deal's funding. The current price per barrel of oil purchased in February is $11.28 (#9.73).

Contractural discussions in respect of an application from Bula for a exploration, development and production contract in the western Iraqi desert have been completed and the contract submitted to the Iraqi government for approval, according to Mr Ivan Walpole, finance director with Bula.

Mr Walpole said the purchase and sale of the Iraqi oil would involve a "slim margin" as is common on large transactions. The company has applied for further allocations of crude oil from Iraq.

Discussions between Bula and the former Taoiseach, Mr Albert Reynolds, concerning his joining the Bula board, are continuing. The company is also involved in discussions concerning a possible share placement with individuals and institutions.