NIOC May Assign Oilfield to Khatam-al-Anbiya

The National Iranian Oil Company is expected to reach an agreement by the end of next month with Khatam-al-Anbiya Construction Headquarters, a major domestic contractor of engineering projects, on developing an oilfield under the new model of oil contracts.

"Some oilfields are offered to them (Khatam-al-Anbiya) and they are now studying the proposals," NIOC chief Ali Kardor said in a statement, ISNA reported on Friday.

Kardor added that Oil Minister Bijan Namdar Zanganeh has given the headquarters a month to choose one of the oilfields. He declined to specify the proposed projects.

Khatam-al-Anbiya, affiliated to the Islamic Revolution's Guard  Corps,  is among the 11 corporations and conglomerates approved by the NIOC to develop new oil and gas projects under the framework of Iran Petroleum Contract.

It is poised to be the second domestic company to sign a deal under the terms of IPC which is designed to bring in foreign investment and technology to develop several dozen oil and gas fields. Earlier this month, NIOC signed the first contract under the IPC framework with Persia Oil and Gas Industry Development Co., a subsidiary of Iranian holding Setad Ejraiye Farmane Emam, to develop three small and medium-size oilfields in the southern oil-rich province of Khuzestan.

Kardor added that IPC deals at home will not impede the process of international IPC tenders.

"There is no problem in holding tenders. Several fields have been considered for international tenders and we are not worried about this (contracts with Iranian firms)," Kardor noted. "Our tenders will be held as planned and in an orderly manner. We don't have any problem with that."

In a statement last week, NIOC called on foreign companies to submit their documents by Nov. 19 to be vetted for Iran's raft of energy projects. NIOC will reveal the final list of eligible companies on Dec. 7.

IPC offers foreign companies more appealing terms and conditions for cooperation in Iran's fast-emerging energy sector, including higher reward for each barrel produced from riskier fields and extended 20-25 year contracts.

Amirhossein Zamaninia, deputy oil minister for financial affairs, said this month that Tehran expects to sign $10 billion worth of oil and gas deals in the current Iranian fiscal that ends in March 2017.