NIOC, Pasargad Energy Co. Sign Oilfield Study Agreement

EghtesadOnline: Pasargad Energy Development Company (PEDC) has signed a memorandum of understanding and a non-disclosure agreement with the National Iranian Oil Company to study three oilfields in the southern regions. It was the second oilfield agreement signed with Pasargad in less than a week.

News ID: ۷۳۹۶۰۶

04 February 2017

The agreement is aimed at developing Sousangerd, Jofeir, Sepehr oilfields in Khuzestan Province based on the terms of Iran Petroleum Contract, the new contractual framework designed to develop dozens of oil and gas projects with foreign and domestic investment, ILNA reported on Friday.

The signing ceremony was held in Tehran on Thursday. Ali Kardor, NIOC managing director, Gholamreza Manouchehri, NIOC deputy for development and engineering affairs and PEDC chief Mehdi Mir-Moezzi were present.

According to Kardor, Pasargad will have six months to complete its studies and submit a development plan, Financial Tribune reported.

Pasargad signed a MoU on Sunday with the National Iranian South Oil Company to conduct studies on Rag Sefid, Parsi and Shadegan reservoirs in the same province based on a customized framework developed by NISOC that conforms to the IPC. The company, a subsidiary of Bank Pasargad, is active in offshore drilling (jackup rig ownership and operation), general contracting (oil and gas exploration and production) and pipe manufacturing.

Expressing satisfaction with domestic firms' interest in playing a role in developing oilfields, Kardor noted that NIOC will sign preliminary agreements with more Iranian companies to study the huge hydrocarbon deposits.

"Domestic oil exploration/production companies which have a foreign partner will have priority in coming tenders over other rivals," he said, adding that NIOC is making an effort to facilitate collaboration between international and Iranian companies.

NIOC is taking measures to help expand the scope of E&P operations of domestic companies in overseas projects, Kardor said, stressing that the state oil company is in the process of  establish globally acceptable integrated oil and gas enterprises.

According to Saleh Hendi, NIOC'S director for drilling operations, so long as Iranian engineers and enterprises do not take exploratory assignments in other countries, they cannot gain access to the state-of-the-art exploration and drilling expertise.

"NIOC has widened the scope of exploration activities in the Persian Gulf," Hendi noted, adding that oil/gas exploration in the strategic waterway is of great significance for the key industry.

Feasibility Studies in Oman Sea

Asked about extending oil and gas development studies in the Sea of Oman, Hendi said, "Iran has so far not drilled any well in the Sea of Oman. But extensive studies are to be carried out in the sixth five-year economic development plan (2016-21)" to tap into the region's potentially massive underground hydrocarbons.

NIOC’s exploration department is working in tandem with the Research Institute of Petroleum Industry to expand studies in the undeveloped sea. Studies include geological surveys close to Iran’s Makran Coast stretching along the Sea of Oman.

The official said the second phase of oil and gas studies in the Sea of Oman is being planned and will be carried out in the near future.

“The volume of shale gas deposits in the Sea of Oman is yet to be estimated, but based on initial findings we expect to find significant reserves.”

Hendi cast doubt on the feasibility of tapping into shale formations because of higher costs as well as a lack of advanced drilling technology.