Int'l Consortium Signs MoU to Study Khuzestan Oilfields

NISOC is assigned to develop four oilfields in Khuzestan, consisting of nine reservoirs, based on a special model of contracts developed by the company
Int'l Consortium Signs MoU to Study Khuzestan Oilfields
Int'l Consortium Signs MoU to Study Khuzestan Oilfields

National Iranian South Oil Company (NISOC) signed a memorandum of understanding with Pergas Consortium, a group of 11 international oil and gas companies, to study two oilfields in the southern oil-rich province of Khuzestan.

According to the terms of the MoU which is a non-disclosure agreement, Pergas is given six months to conduct studies on Shadegan and Rag Sefid oilfields near Ahvaz.

The agreement was signed by Bijan Alipour, the NISOC managing director and three executives from Pergas in Ahvaz on Wednesday, the Oil Ministry's official news service Shana reported.

Pergas is an international engineering, procurement, construction, maintenance, and project management company and a turnkey contractor in the oil and gas industry, according to its website. Pergas operations are largely concentrated in the Middle East, Southeast Asia and Africa.

According to the report, Iran's Sharif University of Technology, which is part of the Pergas Consortium, will participate in studies on the two oilfields.

Shadegan oilfield is 60 kilometers south of Ahvaz. It was discovered nearly half a century ago and started production in 1988 following the end of the eight-year Iran-Iraq war. Production from the field is now reportedly at 70,000 barrels a day.

Karanj oilfield, which is 40 kilometers southeast of the same city, was discovered in 1963. It holds an estimated 9.6 billion barrels of in-place oil.

NISOC is assigned to develop four oilfields in Khuzestan, namely Shadegan, Rag Sefid, Karanj and Parsi with a total of nine reservoirs, based on a special model of contracts developed by the company.

"Other companies and energy groups can study the four oilfields in parallel with Pergas and each field will be awarded to the consortium based on procedures and criteria determined by the National Iranian Oil Company," NISOC said in a statement.

According to Alipour, NISOC's custom model of contracts conforms to the outlines of Iran Petroleum Contract, Tehran's new contractual framework geared to develop oil and gas projects in collaboration with foreign companies.

The government says it hopes to sign $10 billion worth of contracts under the IPC framework by the yearend.

More Agreements Underway

"NISOC will sign several more agreements with international companies within a month," Alipour said on the sidelines of the signing ceremony on Wednesday.

Polish state oil and gas company PGNiG, Schlumberger, the world's largest oilfield services company, and Russia's DeNico Consortium are in negotiations with NISOC on studying Iran's hydrocarbon deposits.

"We will probably sign an MoU with Schlumberger next week," Alipour said.

According to reports, NISOC has also opened talks with BP Plc to enhance the rate of recovery from Shadegan, Rag Sefid, Karanj and Parsi fields.

NISOC has signed agreements with Shiraz University, Islamic Azad University and state-owned Oil Industry Research Institute to help enhance the recovery rate in Ab-Teymour, Bibi Hakimeh and Mansouri oilfields in the south.

As a crucial step to return to Iran's emerging energy market, a number of multinationals have signed agreements to study the country's underground oil and gas reservoirs.

Russia's Lukoil is poised to sign two oilfield agreements with Iran, namely Ab-Teymour and Mansouri, in the fall of 2017. The company is now conducting technical studies over the two oilfields and is expected to hand over its findings to the NIOC.

Malaysia's oil giant Pertamina also signed a nondisclosure agreement in August to study Ab-Teymour and Mansouri fields with six months.

PGNiG signed an MoU this month to conduct studies on Sumar Oilfield in western Kermanshah Province.

Zarubezhneft, another major Russian oil and gas firm, is reportedly discussing terms to boost extraction from two Iranian oilfields shared with Iraq, namely, Aban and West Paydar.

In March, NIOC signed an agreement with French energy major Total S.A. to study the giant South Azadegan Oilfield.


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