Vella was speaking on the sidelines of the Iranian Petroleum and Energy Club Congress and Exhibition, or IPEC, in Tehran.
Referring to the company’s long-term role in developing South Pars Gas Field phases before the sanctions, he stressed that Eni had always implemented the most advanced technologies in all of its projects in the Persian Gulf country.
He underlined “innovation” as a key factor in Eni’s operations, which “helps the company cut production costs.”
“Eni has recently developed a deepwater drilling technology that allows it to significantly reduce the exploration and extraction costs of offshore oil and gas wells,” Vella said.
Eni came to Iran in the early 2000s. The company was to develop Phase 3 of the Darkhovein field in Khuzestan Province and Phase 19 of South Pars, but the US and EU sanctions forced the Italian major, along with many of its European counterparts, to halt operations and leave.
Iran and six world powers reached a historic deal on July 14 in Vienn, which would limit the Persian Gulf country’s nuclear program in return for removing sanctions on its energy and financial industries.
Eni has joined French oil and gas company Total SA, OMV of Austria and German heavyweights Siemens and Linde Group, among others, in quest for securing multibillion dollar in trade and energy agreements during the three-day event.
Total Pledges Cost-Effectiveness
Stephane Michel, the head of Middle East’s exploration and production division at Total, said the French supermajor is ready to finance Iranian oil projects and transfer technology to Tehran.
“Total has vast experience in carrying out (oil and gas) projects in the Middle East, Africa, Brazil and Russia,” he said, referring to the company’s high international profile.
Similar to Eni officials, Michel pledged that Total will introduce cutting-edge drilling and extraction technologies to slash production costs at Iran’s oil and gas fields.
He added that global oil slump has necessitated the cutting of crude production costs for Total. Iranian officials say the cost of oil and natural gas production in the country is relatively lower than the global average, which makes Iran a destination of choice for foreign investment in the energy sector.
Total was active in developing Iranian energy projects for more than 20 years, including the development of several South Pars phases. But it ceased operations in 2010 following disagreements over contract terms as well as pressure from the French and US governments over oil and trade sanctions against Tehran.
Japanese Finance
The prospect of building thermal and combined-cycle power plants via Japanese finance was discussed in a meeting between Deputy Energy Minister Houshang Falahatian and representatives from Japanese companies Hitachi, Mitsubishi and Marubeni Power Systems in Tehran.
The Japanese will be given the green light to fully finance the construction of new power plants in Iran, if they agree to terms with a repayment period of 12 years and 2-3% interest rate, according to Falahatian.
Other Japanese corporations, including Mitsubishi Hitachi Power Systems, Mitsui Oil Exploration Company and Japan Gasoline Company, are also in Tehran to participate in Iran’s lucrative energy projects in the post-sanctions era.
