From http://tinyurl.com/6wukzMauritanian Government Likely to...

From http://tinyurl.com/6wukz

Mauritanian Government Likely to Buy Into Oil Project, Roc Says

Nov. 2 (Bloomberg) -- The Mauritanian government this month is likely to commit to taking 12 percent of the $600 million Chinguetti oil project off the country's coast, reducing stakes in the field owned by companies including Woodside Petroleum Ltd.

The government is likely to exercise a right to buy a stake in Chinguetti before the option lapses Nov. 20, Roc Oil Co., a partner in the field, said in a statement to the Australian Stock Exchange. Expectations it will take the stake are based on a funding agreement last week with Sterling Energy Plc, said John Doran, chief executive of Sydney-based Roc.

Woodside and its partners in May approved development of the 120 million-barrel field, which is due to start up in March 2006. Harpenden, U.K.-based Sterling said Oct. 27 it will pay $15.5 million and provide a letter of credit to cover Mauritania's $130 million of development costs in return for revenue from the stake.

``Roc believes that it is now likely that the Mauritanian government will exercise its entitlement to acquire a 12 percent interest in the Chinguetti field development on a pro-rata basis from all current Chinguetti participants,'' Doran said in the statement.

Shares in Roc, which traded lower before the statement was released, fell 6 cents, or 3.1 percent, to A$1.85 on the exchange. Shares in Perth-based Woodside, Australia's second-biggest oil company, dropped 1.8 percent to A$19.49, while shares of Hardman Resources Ltd., another partner, fell 2.9 percent to A$2.04.

Exercising the option would make the Mauritanian government the third-largest shareholder in the project after Woodside and Perth-based Hardman. Woodside's stake would fall to 47.4 percent from 53.8 percent. Hardman's stake would fall to about 19 percent.

BG Plc and Premier Oil PLC also own stakes in Chinguetti.