PGNiG in Talks to Invest in Iran's Upstream Sector

EghtesadOnline: In line with plans to develop Iran’s oil and gas fields, high-ranking officials of Poland’s state-run gas company PGNiG are expected to meet the National Iranian South Oil Company in February to finalize their ongoing negotiations to increase the recovery rate in the oilfields of Khuzestan Province, NISOC managing director said on Wednesday.

News ID: ۷۳۹۱۶۶

12 January 2017

“PGNiG is willing to invest in Iran’s oil and gas upstream sector and talks are underway to assign the development of an unnamed field to the company,” Bijan Alipour was also quoted as saying by Mehr News Agency.

Pointing to the names of international energy companies that have been qualified to bid for new oil and gas projects, the official noted that besides Total, Shell, Eni and Gazprom as well as Asian companies like CNPC, Inpex, KOGAS and Petronas, the list includes PGNiG that has little history in Iran’s energy market.

Commenting on crude spot deliveries to Poland’s refiners, namely Lotos and PKN Orlen, the official added that as soon as negotiations with PGNiG come to fruition, a cooperation agreement based on the Iran Petroleum Contract, the new framework for oil and gas contracts, will be signed, Financial Tribune reported.

According to Gholamreza Manouchehri, the deputy head of NIOC, a memorandum of understanding was recently signed in Tehran between the National Iranian Oil Company and PGNiG on studying Sumar Oilfield in the western province of Kermanshah.

“The Poles will study the field’s geological structure and its reserves in six months, and provide NIOC with the results,” Manouchehri said, noting that an international tender will be announced to develop the field as soon as the results are ready.

Asked about PGNiG’s expertise in research and development, he said, “They have already conducted similar research projects around the world, including the North Sea and Pakistan, and hope that the present agreement will help us get access to cutting-edge exploration knowhow.”

PGNiG deals with the exploration and production of natural gas and crude oil and natural gas import, as well as storage, distribution and sales of natural gas and crude oil.

Maritime Cooperation

According to Poland’s Deputy Maritime Economy and Inland Waterway Navigation Minister Pawel Brzezicki, the country is willing to expand cooperation with Iranian companies in maritime transport and related industries.

In recent talks in Warsaw with Sirous Kianersi, the National Iranian Tanker Company’s managing director, senior managers of PGNiG and the executive managers of Lotos and PKN Orlen announced that Poland is prepared to provide Iranian oil tankers with services and maintenance.

According to Kianersi, PGNiG officials have shown interest in shipping liquefied petroleum gas with the help of NITC fleet.

Underscoring oil cooperation in the post-sanctions’ era, Kianersi said, “Grounds have been prepared for the expansion of collaboration with Polish firms in a variety of sectors, including marine transport and shipping liquefied gas and petrochemicals.”