largest oil and gas group signed a memorandum of understanding on Tuesday with
the National Iranian Oil Company (NIOC) to explore a potential investment in
Kish gas field in the Persian Gulf and the third phase of development of the
Darquain oilfield in southwest Iran within the next six months.
had signed provisional agreements at the end of last year on the two fields
with Royal Dutch Shell, Russia’s Gazprom, The Philippines’ PNOC and an Iran’s
Ghadir Investment Company.
agreement on June 20 was signed by Gholam-Reza Manouchehri, NIOC deputy managing
director of for engineering and development and Seger Willem Arie Hoijtink,
Eni's vice-president for international upstream projects. Other officials
present at the ceremony were Ali Kardor, CEO of NIOC, and Nouroddin Shahnazi,
CEO of Petroleum Engineering and Development Company (PEDEC).
is no stranger to Iran's petroleum industry. The Italian energy company first
came to Iran in 2000 and completed phase one and two of Darquain oilfield but quitted
development of the third phase in 2011 due to international sanctions imposed on
Iran over its nuclear program.
has already led oil projects in Egypt and the Mediterranean with Manouchehri
saying that the company has registered significant records in rapidity and
quality in these countries.
Iran hopes to enhance oil production from Darquain from 160,000 b/d to 220,000
b/d, which would require an estimated $1.5 billion in investment. In the third
phase of development of the oil field, Ilam, Sarvak and Fahlyan layers will be
Months for Feasibility Studies
said Eni would have six months to complete its technical surveys on Kish and
Darquain fields and submit its conclusion to NIOC.
hope to be able to achieve an acceptable basic development plan based on the
findings of studies we receive from companies," he said.
on these MOUs, domestic and foreign companies will conduct their studies on the
development of oil and gas fields free of any charge," he added.
said an advantage of signing MOUs with a variety of domestic and foreign
companies to study oil and gas fields was the compilation of various plans. "That
would help us compare the results of studies with each other. Furthermore,
valuable projects have so far been submitted to NIOC," he added.
said NIOC had conducted its own independent studies separately in order to have
a more realistic view of oil and gas fields, rate of recovery from them and
Edge Technologies a Must
Iran's new model of oil contracts, IPC, NIOC insists on improved oil recovery
and enhanced oil recovery (IOR/EOR) and expects IPC to bring about oil and gas
said NIOC wants the use of modern technologies in studying the field in order
to "have maximum efficiency in recovery from the fields."
expect the use of conventional technologies which are available in the world in
order to stabilize Iran's oil and gas reserves because these deposits are
Iran's accumulated wealth and should we fail to recover them through IOR/EOR we
will lose these resources in coming years," he added.
said under IPC deals, Iranian E&P companies would join foreign companies in
developing oil and gas fields.
case we reach a final conclusion in IOR/EOR, Iranian companies that are now
serving as partners to foreign companies in oil and gas projects will
themselves become developer of projects," he added.
Seeks Comeback to Iran
Hoijtink referred to Eni's cooperation with Iran in the past in developing Siri
and Darquain fields, saying the Italian company had accomplished all its
projects in Iran.
expect to submit our study findings to NIOC in six months," he said.
"On this basis we are trying to acquire developed technologies in order to
make maximum profit from the fields."
said Kish field was selected due to Eni's return to Iran's gas market, adding
that the Italian group was attentive to gas and gas production.
to Regulate Oil Export Mix
said plans were under way to regulate Iran's crude oil exports mix.
regulating crude oil exports, the amount of oil delivered to various countries will
be crystal clear," he said. "That would help create balance in the
supply of oil to different countries and will avert sudden changes in the trend
of exports and will prevent the country's dependence on oil demand by certain
said that Iran had cut oil exports to India, while in parallel boosting
delivery to Western countries.
said Iran's oil production capacity stood at 4 mb/d, noting that Iran's oil
production had not declined.
said that European countries received 50% of Iran's crude oil exports in May.
Contract Text Finalized
said the text of agreement for the development of Phase 11 of South Pars with a
consortium of France's Total, China's CNPC and Iran's Petropars had been
are waiting to receive some permits and arrange the presence of senior managers
of companies to attend the ceremony of signing the contract," he said, adding
that the agreement would be signed before the administration of President
Hassan Rouhani mandate ends.
said Total had sent a team to Iran to finalize the text of the South Pars
project. "Signature of this contract has nothing to do with political
issues and Total is interested in signing the agreement."
Tender Unlikely Under Current Administration
also referred to a long-awaited tender rounding for Azadegan oil field which
Iran shares with Iraq.
of sending tender papers to all companies, a letter was sent to them so that
companies willing to bid for Azadegan would express their readiness. After it
has been finalized limited bidding round will be held," he said.
said this process would take several weeks, adding: "Furthermore, some
bidders have not already signed MOUs with NIOC and naturally their technical
studies will last months. It is unlikely that the contract for Azadegan field
would be signed under this administration."
Wooed for SP Oil Layer
said NIOC was in talks with Denmark's Maersk to develop the oil layer of South
Pars gas field.
technical model offered by Maersk is under review by NIOC experts," he
said Iran was seeking to deplete the reservoir of the oil layer of South Pars
as it is jointly owned by Iran and Qatar. "That must be done more rapidly
and we have asked Maersk to take this issue into consideration," he added.
said no other foreign company than Maersk had shown willingness to develop the
oil layer of South Pars.
a contract is something and technical issues of recovery from the field are something
else. Since this field is jointly owned and Iran insists on its faster
depletion we are willing to see recovery from this field happen more
rapidly," he added.
also referred to negotiations with India for the development of Farzad-B gas
field, saying: "In case the financial model presented by the Indians turns
out to be commercial we will review it. Meantime, we are drawing up EPC and
EPCF packages to develop Farzad-B. Now if we reach agreement with the Indians
sooner we will welcome it; otherwise, we will not stop developing the field and
we will go another away."
if Shell and Eni were likely to team up to develop Kish gas field, he said:
"Since both companies enjoy market shares in LNG and gas export I don't
think they would like to form a consortium to develop the field."
Committees with Qatar, Iraq
also said Iran was cooperating with neighboring countries for maximum efficient
recovery from jointly owned fields.
demanded that a joint committee be set up and the first meeting of the
committee has been held. Also a joint meeting has been held with Iraq," he
said. "Iran welcomes cooperation in this regard because both sides will
benefit from such cooperation."
said one reason for Qatar's request for the establishment of a joint committee
was that Iran had reached the same level of extraction from South Pars.
before Iran had raised its production capacity in South Pars gas field and Iran
was behind Qatar they would not welcome holding such meetings, but now Iran is
in a strong position and its production capacity has increased. Therefore, both
sides will benefit from holding such meeting," he said.
Courtesy of Iran Petroleum