Woodside says resolves Mauritanian contract dispute

SYDNEY, Mar 31 (Reuters) Australian oil and gas producer Woodside Petroleum Ltd. said on Friday it had resolved a production contract dispute with the Mauritanian government.

Woodside told Reuters on Friday that it would pay 0 million in compensation to Mauritania, in respect to disputed amendments to production sharing contracts that the West African nation had said were damaging to the national economic interest.

But Woodside spokesman Roger Martin said the deal did not involve giving up exploration acreage, contrary to a source in the Mauritanian oil ministry.

Martin said Woodside would also allocate 0 million a year to cover environmental risks relating to the acreage, not the 0 million mentioned by the official.

The amendments were made by a former oil minister who was charged with fraud after a military coup last year.

International oil companies flocked to Mauritania after Woodside made a successful find in the Chinguetti field, now producing 75,000 barrels of oil per day.

Mauritania, an Islamic Republic on the edge of the Sahara desert, is one of the poorest nations in the world, with almost two-thirds of its people living on less than SYDNEY, Mar 31 (Reuters) Australian oil and gas producer Woodside Petroleum Ltd. said on Friday it had resolved a production contract dispute with the Mauritanian government.

Woodside told Reuters on Friday that it would pay $100 million in compensation to Mauritania, in respect to disputed amendments to production sharing contracts that the West African nation had said were damaging to the national economic interest.

But Woodside spokesman Roger Martin said the deal did not involve giving up exploration acreage, contrary to a source in the Mauritanian oil ministry.

Martin said Woodside would also allocate $100 million a year to cover environmental risks relating to the acreage, not the $200 million mentioned by the official.

The amendments were made by a former oil minister who was charged with fraud after a military coup last year.

International oil companies flocked to Mauritania after Woodside made a successful find in the Chinguetti field, now producing 75,000 barrels of oil per day.

Mauritania, an Islamic Republic on the edge of the Sahara desert, is one of the poorest nations in the world, with almost two-thirds of its people living on less than $2 a day.

State oil officials hope the barren nation, which straddles black and Arab West Africa, will be producing 300,000 barrels a day in three or four years time, once three other fields in the same basin as Chinguetti come on line.

Other partners in Mauritanian acreage are Hardman Resources , BG Group , Premier Oil , Roc Oil the Mauritanian government itself.

REUTERS SS SP1348 a day.

State oil officials hope the barren nation, which straddles black and Arab West Africa, will be producing 300,000 barrels a day in three or four years time, once three other fields in the same basin as Chinguetti come on line.

Other partners in Mauritanian acreage are Hardman Resources , BG Group , Premier Oil , Roc Oil the Mauritanian government itself.

REUTERS SS SP1348