Negotiations Underway With Petronas, OMV

Negotiations Underway With Petronas, OMV
Negotiations Underway With Petronas, OMV

Iran is holding talks with Malaysia's state-owned Petronas and Austria's OMV on developing the country's oilfields, managing director of Iranian Central Oilfields Company said

Salbali Karimi added that cultural and religious commonalities between Iran and Malaysia make Petronas a favorable choice for energy cooperation in the post-sanctions period, Mehr News Agency reported.

He said ICOFC has taken Petronas as an example for raising efficiency and output under the 2025 Vision Plan, in which the Islamic Republic is set to become a developed country in 20 years with the first economic, scientific and technical rank in the region. Initial negotiations have been held with Petronas on developing Iran's oilfields as well as holding training programs in cooperation with the Kuala Lumpur-based company.

Earlier this month, an official at Petronas said the company is ready to resume the import of Iranian crude by 50,000-60,000 barrels a day after the sanctions are lifted.

Petronas reported on Wednesday a 91% in third-quarter net profit due to weak global crude oil prices. The state-owned oil firm made a net profit of 1.4 billion ringgit ($321.10 million) in July-September compared to 15.1 billion in the same period a year earlier. It was the third straight quarter of profit declines for Petronas this year.

Moreover, month-long negotiations with OMV on developing Cheshmeh Khosh Oilfield in western Iran are still underway, but the two sides are awaiting the presentation of Iran's new oil contract in a conference in Tehran later this month.

OMV opened office in the Iranian capital in 2001 after signing a deal to conduct studies on the Mehr oil exploration block in Khuzestan Province, but was forced to leave Iran in 2008 due to western sanctions against the Islamic Republic. Karimi said Russian and Chinese companies are also in the race for Iran's lucrative energy projects in the post-sanctions period.