OIEC Expanding Int’l Operations

OIEC Expanding Int’l Operations
OIEC Expanding Int’l Operations

Iran’s Oil Industries, Engineering and Construction company has participated in several tenders to develop oilfield projects in neighboring countries, the firm's chief executive officer said on Tuesday.

“OIEC is competent enough to participate in three international oil tenders in Iraq and Oman alongside major global oil and gas companies. We are now preparing technical and financial proposals for the development projects,” Behzad Mohammadi was quoted as saying by Shana.

OIEC is one of the 11 domestic corporations approved by the Oil Ministry to take new oil and gas exploration projects at home.

Mohammadi said without elaboration that plans are underway to collaborate with an unnamed German consulting firm to further improve the company's organizational structure and efficiency.

According to the official, OIEC will implement foreign and domestic ventures with the help of the German firm so that it can benefit from the foreign company's experience and knowhow in mega projects.

Mohammadi expressed the hope that more Iranian companies would expand operations.

Referring to OIEC's technical capability in the upstream sector, project management, exploratory research, reservoir engineering as well as management development programs, Mohammadi said removing financial constraints and minimizing investment risk are among the key issues the company needs to address.

--- Foreign Partnership

Commenting on ways to acquire funds for energy projects, he said Iranian companies need to collaborate with foreign firms to ease financing.

Regarding negotiations with foreign firms in joint oil and gas development projects, Mohammadi said, "Most of them are European companies. Moreover, the ability and willingness to take part in domestic tenders that are based on the new model of contracts, known as Iran Petroleum Contract (IPC) is a top priority for us."

Underscoring the advantages of IPC over the previous buyback model, he said the new contractual framework will help domestic companies to draw on their professional and technical competence" and compete with international oil and gas contractors.

On past foreign collaboration, the official said OIEC has cooperated with Norway's Statoil and Russia's Lukoil. Furthermore, not only did it collaborate with BP in developing Azerbaijan's Shah Deniz Gas Field, but also linked with Royal Dutch Shell in South Pars phases 9 and 10.

The company is now involved in developing South Pars phases 17, 18, 20, and 21 in addition to the Azar Oilfield in western Iran.

South Pars is the world’s largest gas field, shared between Iran and Qatar, covering an area of 3,700 square kilometers of Iran’s territorial waters in the Persian Gulf. It adjoins Qatar’s North Field, which measures 6,000 square kilometers.

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