Dana Energy Co. Signs Deal to Study Two Oilfields

EghtesadOnline: Tehran-based Dana Energy Company has signed a memorandum of understanding with the National Iranian Oil Company to study two joint oilfields in the southern Khuzestan Province.

News ID: ۷۷۹۴۷۶

27 September 2017

According to NIOC’s news portal, the two companies signed the MoU on Monday at NIOC’s headquarters in Tehran on carrying out technical studies on Sepehr and Jofeyr oilfields.

NIOC normally gives contractors six months to implement such projects.

Sepehr Oilfield is a reservoir in the West Karoun oil block. According to estimates, Iran needs to spend $500-600 million to tap into the field's 300 million barrels of proven reserves, Financial Tribune reported.

Jofeyr field is 50 kilometers west of the city of Ahvaz and also contains gas deposits. Latest NIOC data show the combined output of Jofeyr and Sepehr fields is below 2,000 barrels per day.

Dana Energy is a private oil and gas company active in exploration and production, upstream services and energy trading.

Dana Energy was among the first group of domestic companies certified in July for cooperation in future oil and gas projects alongside foreign contractors.

The company signed a preliminary agreement with Austria's major integrated oil and gas company, OMV, in July for collaboration in upstream oil and gas exploration/production sector.

Two other domestic companies, namely Pasargad Energy Development Company and Ghadir Investment Company, have also signed MoUs in the past months to study the two oilfields.

In addition, the Oil Industries Engineering and Construction Company sealed an agreement in May to conduct feasibility studies on Jofeyr.

Amirhossein Zamaninia, deputy oil minister for international affairs, said last month that Tehran is in parallel talks with about 25 domestic and foreign energy companies to develop joint oilfields.

Iran shares more than two dozens of oil and gas fields with its neighbors, mainly Saudi Arabia, Iraq and Qatar.