Bula Resources has been given approval by the UN Security Council committee overseeing the oil-for-food programme to Iraq to purchase two million barrels of Iraqi crude oil. The company has an agreement to sell the oil on to SOMO, a major international oil trading firm.

The first lifting of one million barrels is scheduled to take place on March 9th from the port of Ceyhan in Turkey. Further liftings are to be made on or before May 24th.

Bula has had discussions with the Iraqi Ministry for Oil on an exploration, development and product contract in relation to a block in the Iraqi Western desert. The contract has been submitted to the Iraqi government for approval.