Iran Drilling Co. Eying Strong Presence in Iraqi, Global Markets

EghtesadOnline: The National Iranian Drilling Company, a subsidiary of National Iranian Oil Company, is making every effort to secure its footprints in the oil- and gas-rich Iraq to expand its activities there.

News ID: ۷۴۵۰۸۰

27 February 2018

According to Sepehr Sepehri, NIDC's managing director, a delegation will visit the Arab country in the coming days to weigh the possibility of cooperation in developing Iraq's oil and gas fields, NIOC's website reported.

The official noted that NIDC is pursuing two major targets in the neighboring country, namely cooperation in oil and gas drilling projects and sharing expertise.

"We are planning to hold talks with Iraqi companies, including Iraqi Drilling Company for drilling projects … NIDC is also ready to prepare the ground for training and market expansion," Financial Tribune quoted him as saying.

Sepehri said his company has participated in tenders held by the Italian giant oil company Eni for drilling projects in Iraq, the results of which remain to be announced.

Reports from January quoted Sepehri as saying that Eni invited NIDC to participate in three tenders on drilling 12, 15 and six oil wells in Iraq.

"NIDC is also negotiating with Iraq’s national drilling company to carry out exploration operations in the country’s southern areas of Basra," he said.

The official added that after Iraq, cooperation with Oman and Qatar are also NIDC’s priority.

NIDC has also taken part in oil and drilling tenders in Oman and Central Asian countries and is negotiating with foreign companies for drilling projects in the region.

Iran and Iraq had reached an agreement on drilling cooperation in late 2013, whereby NIDC undertook training for Iraqi companies using electronic systems as well as fluid mechanics engineering.

--- Boosting Potentials

NIDC signed a memorandum of understanding with the Industrial Projects Management of Iran on Sunday for cooperation in domestic oil and gas projects.

It is an EPCF agreement (engineering, procurement, construction and financing), where the contractor is also responsible for financing the project.

IPMI is a local company active in Iran's downstream sector.

Sepehri said cooperation with IPMI can also boost NIDC's potentials for stronger presence in the global markets.

"IPMI is a leading firm in the downstream sector, which can help us in drilling and technical aspects," he said.

The MoU is valid for one year and could be renewed.

Known as one of the leading players in oil and gas drilling industry among Middle East states, NIDC engages in the exploration, development and delineation drilling of oil and gas wells, especially in joint oilfields, namely South Azadegan in Khuzestan Province along the Iraq border, Azar in Ilam Province as well as South Pars, the world's largest gas field shared between Iran and Qatar in the Persian Gulf.

The company’s services include well logging, cementing and acidizing, drill stem test, well testing, training, development and general services.

NIDC is in charge of offshore and onshore drilling activities. It provides more than 90% of drilling services needed by oil companies inside the country.