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Tehran, Kiev Ink Contract to Develop Iranian Oil Fields

Wednesday, 22 February 2012 | 00:00
Iranian and Ukrainian officials in a meeting in Tehran endorsed a contract to develop Iran's three oil fields of Boushkan, Kouhmond and Kouhkaki.
The contract, valued at about $800 million, was signed between the Petroleum Engineering and Development Company, an affiliate of the National Iranian Oil Company (NIOC), and Inter Naft Gas Prom Pars Co., which is a consortium of Iranian and Ukrainian entities.
NIOC Managing Director Ahmad Qalebani told reporters that the consortium would invest about USD 800 million in the development of the three Iranian oil fields.
Kouhmond heavy oil field is located 80 km to the east of Bushehr port in southern Iran. Though eight wells have been already drilled in the field, only two wells are meant for heavy oil production. The field's in-place heavy crude reserves have been estimated at about one billion barrels.
Kouhkaki oil field is located northeast of Kouhmond about 15 km south of the city of Khormoj where only one well was drilled in 1973. The field contains light crude with estimated in-place reserves of about 780 million barrels.
Boushkan oil field is located 100 km north of Bushehr and 30 km from Dalan gas field. The field's in-place reserves have been estimated at about 340 million barrels with a single well drilled in 1963.
The fields will be developed in two phases to produce 11,000 barrels per day (bpd) of crude oil after the completion of the first phase, which will hit 22,000 bpd when the second phase is finished.
A total of 18 heavy and extra heavy oilfields have so far been discovered in Iran, including Ferdowsi oil field in the Persian Gulf, which is one of the country's biggest heavy oil fields with proven reserves of more than 31 billion barrels.
Iran's total in-place oil reserves have been estimated at more than 560 billion barrels with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.
Iran holds the world's third largest proven oil reserves and the second-largest natural gas reserves.
Iranian officials have dismissed US sanctions as inefficient, saying that they are finding Asian partners instead. A large number of Chinese, Indian and other Asian firms have negotiated or signed up to oil and gas deals with Iran.
Following US pressures on companies to stop business with Tehran, many western companies decided to do a balancing act. They tried to maintain their presence in Iran, which is rich in oil and gas, but not getting into big deals that could endanger their interests in the US.
Yet, after oil giants in the West witnessed that their absence in big deals has provided Chinese, Indian and Russian companies with excellent opportunities to sign up to an increasing number of energy projects and earn billions of dollars, they started showing increasing interest to invest or expand work in Iran.
Source: FNA
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