Iran, Malaysia sign MoUs for exploration studies on two oilfields

EghtesadOnline: National Iranian Oil Company (NIOC) and Malaysian Petronas have singed a Memorandum of Understanding for exploration studies on South Azadegan and Cheshme Khosh oil fields.

News ID: ۷۳۸۷۷۱

22 December 2016

Deputy Managing Director of the NIOC Gholam-Reza Manouchehri and executive vice president and CEO of upstream of Petronas, Anuar Taib, signed the contract on Wednesday.

Up to so far, several MoUs for exploration studies have been signed with international oil executives on oil and gas fields, IRNA reported.

The MoUs do not mean ceding the fields to the executives involved in exploration and the international tenders formality will be held to determine the contractors.

South Azadegan oil field is the joint oil field of Iran with Iraq.

The CNPC will undertake the first phase for development of the field but due to several years of delay, the Chinese company was expelled from South Azadegan after Petroleum Ministry ultimatum. Of course, the company is still in charge of developing north Azadegan field and is to undertake the second phase of the project on north Azadegan.

After discharge of the Chinese company, development of South Azadegan field was entrusted to Iranian companies. Though the project for development of the field accelerated after ceding to the Iranian companies, due to low technology, the amount of gas extraction from South Azadegan is close to six percent.

Ministry of Petroleum earlier announced that South Azadegan field is among the first fields for which international tender will be held.

Iran and Royal Dutch Shell signed a MoU in Tehran just three weeks ago for exploration studies on three oil and gas fields like Azadegan.

Cheshme Khosh oil field is in Dasht Abbass of Ilam, 52 kms south of Dehloran, and 70 kms west of Andimeshk.

The oil production capacity of Cheshme Khosh is 18,000 barrels per day on the average.

Earlier, the NIOC and Russian Gazprom signed a MoU for exploration studies on Changuleh and Cheshme Khosh fields west of Iran.