North West Oil Group, Inc. (NWOL)

[eik]

Thank you, cmzio.
This is my short essay on topic :)

The way it works everywhere, especially in Russia, where connections are everything: small unknown company “Creditline” with ~ $400 (!) capital (10,000 roubles) wins $3,575 bln contract guaranteed by Syrian government.
http://www.ashng.ru/news/tek/page4/0000004992/
Creditline has nothing except mysterious connections of it’s owner Nizami Piriev with Syrian authorities. Of course, from the first minute they start looking for someone who can actually execute the contract. The main requirement – this “someone” has to have support of Russian Government. Without such a support the contract is dead. This is the level of Foreign Policy and inter-State relations. The fact that NWOG has managed to take this deal speaks for itself. This is a major test for NWOG. If they are really well connected (which always was my educated guess/assumption) – this is HUGE!
I don’t have much time to look at this until weekend, so I would ask somebody to translate this article (Creditline -Syria part) and post it here. Conditions of contract are really exciting:
1. Syria’s export is 250,000 brl of oil daily. New refinery will get 140,000 brl of this.
2. Profit sharing: first 10 years Syria – 15%, refinery – the rest. Next 5 years: Syria 30%. Next five years: 45%. Then – 60%. In 25 years Syria takes the project completely. According to today’s news 63% of “the rest” belong to NWOG. In 6 years all expenses will be returned, and refinery becomes a cash machine. Financing of the project was resolved by Creditline. Some European and Arab banks are involved. Project is insured, and special company was created for this purpose in UAE.
3. Piriev owns another company in Uzbekistan – “Stroytransgaz” which is the main partner of GAZPROM there, and already performs some other projects in Syria.
4. In March one of the Russian Oil majors Tatneft (LSE, and recently NYSE, listed) considered as the most probable partner of Creditline. NWOG took this place.

http://www.derrick.ru/index.php?f=n&id=8732

The only reason I am not getting too excited (yet) – there is a slight chance that in a couple of years NWOG will re-sell this deal to somebody else. I am a little bit suspicious after their sale of Surgut-7. Still a great deal, however. Other than that… this is HUGE (did I use this technical term already? :), which is just my opinion, of course.