Cites violation of court orders and human rights

Denies false charges made by PEDCO in media

Constanta- Romania, August 16 2006:  Grup Servicii Petroliere s.a (GSP), a Romanian drilling and oilfield services company today accused Petro Iran Development Co (PEDCO), a subsidiary of state-owned National Iranian Oil Co. (NIOC) of violating international norms by holding hostage one of its rigs and crew in Iranian waters despite court orders to the contrary.

The Constanta-based company, part of the Upetrom Group Management Limited which employs some 4,000 staff with 98 years experience in manufacturing oilfield equipment, said two of its rigs - Fortuna and Orizont - were held hostage in the Iranian waters despite the termination of contract four months ago.

"This is a complete violation of  human rights as the rigs and its crew was moored in the Iranian waters even after the termination of contract," said Mr. Gabriel Comanescu, President of GSP.

"As a gesture of goodwill GSP allowed the rigs to continue its work schedule for three months since the date of termination of contract on April 1st , 2006 in order to secure the well," he said.

"We have managed to arrange the necessary clearance for the boats to take out one of the rigs - Fortuna - based on a court decree from Queshm and an implementation order from Hengam Island security forces hand delivered to PEDCO, but the other rig  along with Romanian crew is yet to be released though there is a court order issued three months ago from Kish Court," he said.

GSP said the rig, Orizont, is still held hostage by PEDCO delaying the clearance papers for boats to toe it citing frivolous reasons like safety procedures for the last three months. "It is ridiculous that PEDCO is obstructing the clearance documents for the tugboats & all the shipping agents are afraid to lose business from PEDCO if they cooperate with us. How can it take three months to implement safety procedures, which have not even started. We even offered that we will do the necessary safety procedures in line with international norms," said Mr. Comanescu.

The rigs were hired by Dubai-based Oriental Oil Co. and without the consent of GSP further rented to PEDCO. GSP had terminated the contract with the company on account of breach of contractual conditions namely failure to open an acceptable L/C as security and non-payment of invoices for several months currently exceeding US$8 million.

Denying the allegations made by PEDCO in the media recently, Mr. Comanescu said GSP has full  right to take out the rigs post termination of its contract with Oriental Oil Co. Moreover, GSP later discovered that the Dubai-based company had never existed and it was never registered with the Dubai Chamber of Commerce and Industry (DCCI).

"PEDCO's illegal actions are clearly blatant violation of all international norms, conventions and practices. We have all intentions to take on these violations in competent court of law and pursue justice," said Mr. Comanescu.

He said GSP is willing to cooperate with NIOC for a future contract but only through a direct contract without an imposed broker, adding that PEDCO's delay on the issue was akin to pirate acts which will bring down the reputation of NIOC.

"We hope that Iranian authorities will take immediate action for the illegal obstruction of the rig Orizont and the safety of our Romanian crew on board. With such behavior, it is no wonder that nobody is participating in the tenders organized by NIOC in Iran. PEDCO management is mistaken if they assume such pressure will force me to sign a new contract with their nominated broker," Mr. Comanescu. added.

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© Press Release 2006