Eni to Sign Deal to Survey 2 Iran Oil, Gas Fields
Eni to Sign Deal to Survey 2 Iran Oil, Gas Fields

Eni to Sign Deal to Survey 2 Iran Oil, Gas Fields

Eni to Sign Deal to Survey 2 Iran Oil, Gas Fields

Italian oil and gas giant Eni is expected to sign a memorandum of understanding with the National Iranian Oil Company on Tuesday to study two Iranian oil and gas fields.

Based on the agreement, Eni will have six months to conduct survey on the offshore Kish Gas Field in the Persian Gulf and Darkhoveyn Oilfield in Khuzestan Province, ISNA reported Monday.

Italy's biggest oil and gas firm hopes to pick up where it left off in the Darkhoveyn project. It completed the first and second development phases of the oilfield under a $550 million contract it had signed in 2001.

Update: Eni, NIOC Ink Deal on Studying Iran Oil, Gas Fields 

Eni had submitted a proposal to develop Darkhoveyn's third phase and was reportedly close to finalizing a $1.5 billion agreement in 2009, but it was forced to halt operations following the fallout between Iran and the West over the country's nuclear program that led to imposing tougher economic restrictions against Tehran in 2011 and 2012.

Darkhoveyn oilfield is located 30 kilometers north of Khorramshahr and 100 kilometers south of Ahvaz. It holds an estimated 5 billion barrels of crude oil in place, more than one-fifth of which is deemed recoverable.

The reservoir is part of a string of oilfields in the West Karoun block near the Iran-Iraq border holding a total of 67 billion barrels of crude oil. Philippines’ state oil company, PNOC, and Ghadir Investment Company, a subsidiary of Bank Saderat Iran, are separately surveying the field.

Iran is reportedly drawing around 160,000 barrels per day from Darkhoveyn. The third phase is aimed at raising daily output by an additional 50,000 barrels.

Kish Gas Field

The Rome-based company also looks to secure the development rights of the Kish Gas Field which was discovered nearly 50 years ago.

Located 30 kilometers east of Lavan Island in the Persian Gulf, it holds an estimated 1.3 trillion cubic meters of natural gas in place and more than 500 million barrels of gas condensate.

Royal Dutch Shell, one of the seven producers of the Big Oil club alongside Eni, is also in talks over the Kish field. A top oil official said in March the Anglo-Dutch company could win the field's development rights as it was "the only company to have shown interest" in the Kish project, but Eni's addition to the race can ratchet up competition for the gas reservoir.

Eni joined the growing ranks of customers of Iranian crude in December, taking in its first shipment from the OPEC producer after four years. The company has discussed the prospect of a long-term oil supply agreement with Iran.

Tehran has intensified efforts to involve foreign oil and gas majors in its key petroleum industry after years of financial and trade curbs that deprived its economic and energy projects of funds and technology.

Total, Gazprom, Schlumberger, Pertamina, and Petronas are among the big names studying Iran's hydrocarbon reservoirs. Tehran says it hopes to sign the first oil and gas deals with multinationals in two months.

Short URL : https://goo.gl/AnLJ9J
  1. https://goo.gl/Mq9MwF
  • https://goo.gl/QW7CfP
  • https://goo.gl/VoSooy
  • https://goo.gl/BwHSkN
  • https://goo.gl/LoQ8UM

You can also read ...

The number of new apartments built in 12 old districts of Tehran leaped by 56% compared with the corresponding period of last year.
Top construction companies in Iran are mostly known for...
Swap operations resumed earlier this month after a seven-year break.
Iran is ready to ramp up oil swap capacity after receiving the...
Amid Tensions With America, Businesses Flock to Iran
Right now, the US is doing the rest of the world a big favor...
Iran’s Dairy Industry Booming, as Exports Expand
The Iranian dairy industry is beginning to expand, as dairy...
Butter Imports From 6 Countries
More than 13,900 tons of butter worth 2.13 trillion rials ($65...
Int’l Glass Expo Scheduled
The First International Exhibition of Glass and Related...
Bounced Checks Down 5.6%
Iranian banks returned 1.5 million checks worth 130.6 trillion...
Iran is pinning hopes on the investment and know-how of foreign oil companies to enhance extraction rates.
The National Iranian Drilling Company has completed drilling...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.