Naji Sadouni told PIN: Based on NIOC Directing Board approved bill on funding Azadegan Oilfield Development Project, NIOC started negotiating CNPC, winner of North Azadegan Oilfield Development Plan, to persuade them to invest in South Azadegan Oil Field Development Plan.
He added: at the moment Nico Company has 90% of project share and Japanese INPEX company 10% of project share .Based on this MoU, CNPC is to buy 70% of Nico Company share and finance more 20%. Dealing with financial problems, Azadegan will produce 260,000 barrels of oil a day all together (150,000 barrels in first phase and 110,000 barrels in second).
He indicated: It is estimated that developing South Azadegan Oil field asks for $2.5b funding.
He reminded: South Azadegan Oil field development has budgeting problem as Nico company cannot afford 90% of the project – due to great number of responsibilities and activities.
He emphasized: Because of world economic crisis Nico company will not be able to provide for required financial sources. Japanese helped Nico Company $3 bn. But as the world economic conditions have changed, it is not possible to fund the project through this strategy.
Naji Sadouni confirmed: Ratified by National Iranian Oil Company Directing Board, hopefully it will put into operation. Not to be approved due to any reasons, NIOC should think of another way to fund the project.
He declared: Also based on the same bill, early production of oil from Azadegan Field is to be inaugurated-10,000 barrels a day for the beginning and it is to reach 70,000 barrels a day. Also based on Directing Board bill; early production is concerned as a mean to account for a part of required budget.
Azadegan – the world biggest unite oil field in last 30 years - enjoys 42 bn barrels of oil. It is located in south west of Ahvaz - at 83 km distance. Its measure is about 900 km2 - including southern and northern part.
Crude oil of this field is heavy one and it is to supply Khuzestan Super Heavy Refinery.