National Iranian Oil Company Signs Contracts Worth $1.2B

Via The Financial Tribune, a report on contracts recently signed by the National Iranian Oil Company to develop eight fields:

The National Iranian South Oil Company, the Iranian Offshore Oil Company and Iran Central Oil Fields Company — all subsidiaries of the National Iranian Oil Company – signed contracts with domestic oil and gas firms on Monday to develop eight oilfields.

According to ILNA, production, maintenance and enhancement agreements, worth $1.2 billion, include 33 projects (29 onshore and 4 offshore) to raise oil output by 185,000 barrels a day within three years.

Masoud Karbasian, head of NIOC, said the projects will create jobs in the southern and western regions, namely Khuzestan, Bushehr, Hormozgan and Kohkilouyeh-Boyer Ahmad.

“NIOC will put up 80% of the cost, including via bond sale,” he said. Contractors are to invest the remaining amount but will not be paid unless output increases by at least 50%. After the fields produce for a year and a half, operators would have to use their own funds to cover costs.

Fields to be developed include Bibi Hakimeh, Siah-Makan and Chelingar in Gachsaran, Kohkilouyeh-Boyer Ahmad Province, Lali Bangestan in Ahvaz, Balaroud, Maroun, Mansourabad and Ramin in Khuzestan, Resalat in Hormozgan and Nargesi and Forouzan in Bushehr Province.

The project is part of government plans to boost oil output from joint hydrocarbon deposits. Iran owns 145 oil and gas fields, of which 26 are shared with neighbors including Kuwait, Iraq, Qatar, Bahrain, the UAE, Saudi Arabia and Turkmenistan.

Domestic firms involved in the project are Global Petro Tech Kish Co., Persia Oil and Gas Industry Development Co., Petroiran Development Company, Pasargad Energy Development Co., North Drilling Company and Iranian Offshore Engineering and Construction Company.

This entry was posted on Wednesday, January 13th, 2021 at 7:05 am and is filed under Iran, National Oil Company of Iran.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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