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Canadian Firm to Study Binaloud Feasibility

Canadian Firm to Study Binaloud FeasibilityCanadian Firm to Study Binaloud Feasibility

Economic feasibility studies of Binaloud Oilfield have been delegated to a Canadian company, the Iranian Offshore Oil Company’s deputy for research and technology said.

“Many years ago, feasibility studies of the oilfield were conducted by an Indian company, based on which the field’s development plan was not economically viable,” Javad Rostami was quoted as saying by Mehr News Agency.

Rostami added that currently Iran is waiting for the Canadian company, which he did not name, to announce the final results.

Stressing that the studies will determine if cutting-edge technology for developing offshore oilfields has been employed in Binaloud, which would make it economically viable, Rostami said, “The field’s oil is of a heavy kind and the studies are expected to yield good news.”

Farsi oil and gas block, which includes Farzad-B gas field and Binaloud Oilfield, is one of the largest hydrocarbon reserves in the country.

The discovery of Farsi block goes back to 2002, after which a contract with an Indian consortium of OVL, Oil India and Indian Oil Corp. was signed to develop the fields.

But the Indians withdrew from the project due to the imposition of the US-engineered sanctions against Iran. According to studies, Binaloud’s in-place oil is estimated to be 1 million barrels.

Financialtribune.com