Cooperation With Russia, Turkey to Boost Iran's Oil, Gas Production

EghtesadOnline: A joint effort by Iranian, Russian and Turkish companies can lead to producing more than 100,000 barrels of crude oil and over 80 million cubic meters of natural gas per day from Iranian fields, the head of Iran's Ghadir Investment Company said.

News ID: ۷۷۹۰۰۹

04 September 2017

Ghadir, a subsidiary of Bank Saderat Iran, signed a preliminary agreement with Russia's Zarubezhneft and Turkey's Unit International in Moscow last month on joint investment in oil and gas development projects. In one of its first potential collaborations, the consortium is looking to develop three oilfields and a gas field south of Iran.

Abdolreza Hossein-Nejad, chief executive officer of Ghadir, said the consortium will present a development proposal to the National Iranian Oil Company for Darkhovein, Sepehr and Jofeyr fields in the southern Khuzestan Province.

"According to early estimates, total output from the three oilfields is estimated to reach 100,000-105,000 barrels per day, including 70,000-75,000 bpd from Darkhovein and 30,000 bpd from Jofeyr and Sepehr fields," he was cited as saying by IRNA on Saturday.

According to Financial Tribune, Ghadir signed an agreement with NIOC in April to study the three oilfields along with offshore Kish natural gas deposit in the Persian Gulf within six months.

The gas venture is planned to be developed in three phases, with each phase to produce 28 million cubic meters of gas daily. Efforts to develop Kish field started a decade ago, but the project has changed hands several times, consequently affecting its development pace.

Unit International said in a statement last month that the three companies are poised to invest a total of $7 billion for drilling three oilfields and one natural gas field in Iran without providing names.

The Turkish firm, which also seeks a stake in Iran's electricity market, said the three companies had signed the agreement as equal partners. However, Hossein-Nejad said Ghadir's share of investment will be higher by one-tenth as "the leader of the consortium".

Unit has signed a provisional deal to build two power plants in Iran, which could increase to six.

The official added that Ghadir is utilizing the expertise of Beicip-Franlab S.A., a French energy consulting services and software solution company, in studying the oil and gas fields.

"They [Beicip-Franlab] have great experience in studying reservoirs and raising the rate of recovery in oil and gas fields," he said.

Ghadir is among more than a dozen Iranian firms approved by the Oil Ministry to develop oil and gas fields in partnership with international companies. Tehran aims to pair domestic and global energy firms in a move to form exploration and production companies at home.

"We do not have an all-round E&P company in Iran, but this is an opportunity to increase our know-how in the upstream oil and gas sector," Hossein-Nejad said.