It has entered several cooperation agreements with the parties and is ready to run tenders for oil projects within framework of the new oil contract models.

Eight Iranian companies are now qualified in E&P to enter partnership with foreign parties to implement oil and gas projects within framework of the new model of oil contracts.

Dana Energy Group has a record of 15 years of activity in oil industry. Like other oil companies it waits to sign new oil contracts to play a role in the Iranian oil industry and help better business.

Head of the E&P Business Department at the Dana Energy Group Mostafa Khoie has in an interview with Shana said, "We do not wish to remain silent partner in the course of the projects."

He said Dana Energy Group runs with a team of management capable enough to undertake projects but cannot run high risks due to scarcity of the financial resources, He said senior directors of Dana Energy Group have rich experience in the buy-back contracts and have been cooperating with both Iranian and international companies.

"In fact it can be said they have gained managerial experience and potential in oil and gas field development and this has afforded great help to enforcement of projects."

He said all shareholders of the Dana Energy Group are from private sector and it has nothing to do with government.

The competency of the Group has been endorsed by Ministry of Petroleum, said the official, adding that it has run tenders for all projects it has been involved.

He said only qualifications of eight, including Dana Energy Group, out of 39 bidders were approved by Ministry of Petroleum and fortunately Dana Energy Group was on top of the 8-member list of the E&P qualified companies.

As far as technology is concerned, E&P has access to sources of technology generation and is well aware of the technology needed by the oil industry.

The Dana Energy Group technicians have long years of experience in geological and reservoir studies, geology and petro physics, according to the official. "We can use the experience while the new model of oil contracts is implemented.

Since 15 years ago when Dana Energy Group  was established, its staff have been gaining experience and they have been active in macro management in all domains, according to the official.

Khoie said, "We have rich managerial experience in such upstream sectors as drilling, reservoir studies, geology and geophysics. Since four to five years ago, Dana Energy Group has been seriously and effectively involved in E&P."

The staff of the Dana Energy Group is now well competent in reservoir engineering, he added.

Speaking on the Dana Energy Group experience in management, it should be said management includes many activities such as designing an executive procedure for enforcement of contracts, expenditures and their control, risk assessment of potential of companies and manpower security. "Fortunately, our colleagues have rich experience in all the adore-mentioned areas. As I said, we have experience in enforcement of the buy-back contracts as an employer or operator.

Naturally, our directors have gained such experience through engagement with international companies and have raised their power and knowledge of management."

"For the time being, the E&P companies have two alternatives per the cabinet approval: Either serve as partners to foreign companies and implement projects as they assume the leading role. The second option is – as Minister of Petroleum has also emphasized – Iranian companies assume leading role in the miniature and medium projects. Is Dana Energy Group ready for activity in either cases?" asked Shana.

Khoie replied, "Just take a look at Dana Energy Group resume: You will find out we are capable enough in management of the small- and medium-sized projects; already, we have been active in the domains. So we have high managerial power."

Presently, 1,100 people are active in Dana Energy Group, according to the official.

All Dana Energy Groups fall into three main categories: E&P, upstream services and product trade, Khoie elaborated.

"Now we are ever growing company. That's for 15 years that we have started activity in oil industry and traditionally we have been a company providing service in contracting," he added.

Khoie said Dana Energy Group has been a party to HOA deals, an instance of which being development of Changoule field common with Iraq, the MDP plan, and demining operations.

He said his company has been in talks with Arvandan company for development of Sohrab field, development of Darkhoein in phase three, Italy's Edison Company and the like.

He then said his Group has decided not to undertake exploration projects because it involves high risk toleration, intolerable to the Group.

"In fact we look for development of the fields where we can manage our risks. The kind of field having proven reserves is of high importance for Dana Energy Group. We should invest in safe spots. We have no problem with production believing that the capital will return."

He said his Group has been in talks with foreign companies. "After Tehran conference, talks, all being managerial in nature, were held with about 30 foreign companies, including those from Europe, Russia, Asia and South America."

The foreign companies have had different attitudes towards cooperation with Iranian companies, said Khoie, adding that however, interesting point is that the companies have had positive attitude towards Dana Energy Group activities in oil industry.

Talks with foreign partners mainly concerned the form of partnership, said Khoie, adding, "We do not wish remain a silent partner. We do not like to be present beside foreign companies as a mere partner while oil projects are implemented. We have told all foreign companies that we want to have influential presence and use our resources. At any rate, we know domestic sources better than foreign companies. We can define an Iranian information source or Iranian content. We have full information on the sources and do know which sources we should use that will bear less risk. In fact, I want to say, we can manage our risks in cooperation with each other; Of course, foreign companies have benefitted from Dana Energy Group expert consultations and reconsidered their options."

Evidently, the geological studies and production from field and reservoir will be effective in the course of enforcement of contracts, said the official, adding that naturally, they can use the Group's consultations. "Within the period we signed contracts for cooperation with six foreign companies"

"We do not wish to use our all potential for implementation of just one project. We do not intend to concentrate on just one project. We want to distribute our financial, managerial and experiential potential. We hope to sign one or two contracts with foreign companies as Iranian company as get engaged in development of the same number of the small- and medium-sized fields."

He said when compiling new buy-back contracts, National Iranian Oil Company (NIOC) expects the E&P companies to serve as a tool for transfer of the new technology. "Of course, Dana Energy Group is now working on the model of technology transfer in Iran. Presently, we do not have special model for transfer of technology in the oil industry."

"We wish to deal with the issue who are those transferring technology and from which countries we should receive technology and how the means of the technology transfer should be. We hope Dana Energy Group will be able to extract a model for technology transfer."

Concluding his remarks, Khoei said Dana Energy Group has no problem to assume a leading role in the small- and medium-size projects and its only problem is financial. "We are now busy in talks with foreign consultants to access financial resources outside Iran. We have at the same time a look to domestic banks and the National Development Fund, hoping to be successful."

Reporter: Negar Sadeqi
Translator: Behnaz Hossein Gholipour