Friday, February 20, 2009

The Mentor - A Joint Venture between Nosterafu and Cromwell in Discordia? Bad business for all

Cromwell stock has seen a significant increase with its expansion into
electricity projects and support for the Cocoa Weevil Eradication Pilot
Program. The strength puts Cromwell in good position to solidify the
contract with the Discordian government on control of oil production.
However the Discordian government opening the bid for the oil contract,
which has the potential for big returns for both corporate investors and the
government of Discordia, is detrimental to the long-term success of the
company.

However with an attempted coup in neighboring Lingama and a tenuously
unified government in the country of Discordia, Open Book International has
been at the forefront of trying to broker a joint venture between Nosterafu
and Cromwell. The venture would be monitored by OPI and require financial
transparency, and restrictions on spending revenue for arms purchases by the
government. The agreement, crafted by OPI, has yet to be officially accepted
by either oil company or the government of Discordia, although a
representative of OPI reports that they have received positive feedback from
all parties.

While Open Book claims that a join corporate venture would be the only
way to ensure political stability and the most beneficial outcome for all
parties, there are serious doubts to the feasibility of such a venture. The
venture would be a 50-50 sharing of potential resources. Both Nosferatu and
Cromwell would have equal access to oil resources but would build and
operate separate facilities. Any sort of joint venture seems untenable given
that relations between Cromwell and Nosterafu Oil re very strained as a
result of a Joint Venture in South America. Cromwell is considering
divesting its share in that particular Joint Venture-publicly on the grounds
of ³low prospect of Exploration success² but in fact due to concerns about
in compatibility of the association with Nosterafu with Cromwell Oil
International¹s Ethical principles.

Also in light probable links between Nosferatu arms trade deal
backing its oil contract, this is a potential source of conflict between the
companies. With a lack of transparency, Nosferatu could provide a dangerous
source of investment for Discordia. It could exacerbate the tenuous
government unity recently announced. The region needs the stability of a
company like Cromwell that is far more transparent and ethical than
Nosterafu that is associated with arms trade.

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