Oil Technology Transfer Talks With Europeans

Oil Technology Transfer Talks With EuropeansOil Technology Transfer Talks With Europeans

Iran has started a new round of negotiations with two European oil companies on technology transfer, an official said on Sunday.

“Based on the oil industry’s macro-plans on unified and technological development of Iran’s oil reservoirs in the post-sanctions period, talks are underway with a Norwegian firm and a Swiss-German company,” Mohammad Keramati, head of the Research Institute of Petroleum Industry, told Mehr News Agency without naming the international firms.    

"The Norwegian company has great experience in horizontal and multi-branch drilling of oil wells and, in cooperation with another Norwegian enterprise, has drilled the longest horizontal well of the world, which measured 9.6 kilometers."

"During negotiations with the company, cooperation in designing and implementing drillings in less permeable horizontal layers has been discussed," he said.

The official noted that the Swiss-German company is competent in manufacturing smart control valves of oil wells and has successfully designed many smart systems for oilfields across the world. He added that the company has expressed readiness to cooperate with Iran.

"To continue the bilateral talks, both European internationals will be invited to visit the country in the near future," he said. Keramati stated that one of the institute's priorities is to enhance ties with credible international companies, which is in line with policies for pursuing the technological development of oil industry.  

  Oil Output Rise

Deputy Oil Minister Rokneddin Javadi said there is no technical limitation on Iran's oil industry for raising oil output by 500,000 barrels per day.

Welcoming the lifting of sanctions imposed on Iran's oil industry, Javadi added that an opportunity to accelerate the country's development has been created, which doubtlessly will influence the oil industry."

Javadi noted that the oil industry's pipelines and facilities are not dilapidated enough to hamper the production increase and said as sanctions are lifted, the first oil contracts with oil majors will be signed by the middle of the next Iranian year (to start on March 20), under the new contractual terms of the new Iran Petroleum Contract.

Iran has declared that it will be able to increase exports by 500,000 bpd immediately upon the lifting of sanctions and by a further 500,000 bpd over the following six months to take export volumes to the pre-2012 level of 2.3 million bpd.

Javadi, who is also the managing director of National Iranian Oil Company, stressed that NIOC has the readiness to increase oil output and export, but it is currently monitoring hurdles facing Iranian banks, which may delay the process for a few weeks.

"Raising crude production, freeing up the oil-related blocked money and further developing the industry by attracting foreign investment and knowhow from the global market top NIOC's list of priorities in the post-sanctions period," he said.