Tracer Petroleum Corp., Calgary, has decided to split its operations into two wholly owned business units. One will continue Tracer's upstream operations overseas, and the other will hold Tracer's petroleum trading rights in Iran and elsewhere. Tracer is also considering a spinoff of the trading company.
The first company, to be named Tracer Exploration & Production Co. (TEPCO) will own all of Tracer's current and future rights to upstream exploration and development projects in Indonesia, Kazakhstan, and Iran. TEPCO, to be registered in Bermuda, will acquire and develop petroleum project interests in Iran and the Caspian Sea region.
Tracer's other business unit, Tracer Trading Ltd. (TTL), will sell the oil, natural gas, and gas condensate that TEPCO produces. TTL will also be registered in Bermuda. It will hold all of Tracer's rights to crude swaps and petroleum trading. Initially, TTL will undertake trading with major commodity trading firms. The company said it is working on seven trading transactions involving Iran.
TTL will also assist other companies with procuring petroleum-related goods and/or services from Western companies.
TTL's operating offices will be in Geneva, Bermuda, and Tehran; it may also open offices in London, Dubai, and Singapore. A Tracer statement said a possible TTL spinoff could be achieved by a special dividend.
