Improved fiscal terms for the production sharing contract for the Azurite Field and the Mer Profonde Sud licence in the Republic of Congo has been formally approved. The amendment gives PA Resources a larger net entitlement share of Azurite field revenues and applies retroactively from 1 October 2010.

The amendment on improved fiscal terms was signed between the authorities in the Republic of Congo and all the partners in the production sharing contract for the Mer Profonde Sud license (MPS) and the Azurite field; Murphy West Africa Ltd (working interest 50%), PA Resources (W.I. 35%) and Société Nationale Petroles du Congo (W.I. 15%). The amendment has now received the final formal approval by the Parliament in the Republic of Congo and has been sanctioned by a Presidential decree.

The amendment is valid for the Azurite field and the MPS-license. The improved fiscal terms give PA Resources a larger net entitlement share of the Azurite field's production and revenues. ListenRead phonetically.

Net entitlement production refers to barrels of oil attributable to PA Resources under the terms of the production sharing contract and which can be equated to 'post tax' barrels.

The amendment applies retroactively from 1 October 2010, which affects the Group's tax expenses positively in the first quarter 2010. This will be presented in the company's next financial report.

Tags: PA Resources