Schlumberger Signs MoU to Study 3 Khuzestan Oilfields

National Iranian South Oil Company (NISOC) signed a memorandum of understanding with Schlumberger Ltd, the world's leading oilfield services provider, to study three oilfields in the southern oil-rich province of Khuzestan.

According to the MoU which is a non-disclosure agreement, Schlumberger has six months to conduct the studies on Shadegan and Rag Sefid and Parsi oilfields near Ahvaz.

The agreement was signed by Bijan Alipour, the NISOC managing director and Tony Bowman, Schlumberger' president for production management, in Ahvaz on Sunday, the Oil Ministry's official news service Shana reported.

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 three oilfields in parallel with Schlumberger and each field will be awarded based on procedures and criteria determined by the National Iranian Oil Company," Alipour said on the sidelines of the signing ceremony on Sunday.

He said 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.

Regarding the benefits of drawing on the experience of foreign firms, Alipour  noted that  negotiations were held with 33 international firms to cooperate in joint ventures and memorandums of understanding will be signed in the near future.

"Such MoUs will certainly help improve the economy of Khuzestan Province."

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

--- A Unique Opportunity

Bowman said this a unique opportunity for both sides which should be taken advantage of the best way possible.

According to Bowman, the deal does not involve execution of oilfield services operations and intends to comply with the laws of the land where it operates.

"We are fully aware of the terms enshrined in NISOC's model of contracts and will do our best to stick to the rules," he said, expressing the hope that mutual cooperation would lead to signing long-term contracts.

Though it is incorporated in Curacaos in the Dutch Antilles, Schlumberger has one of its headquarters in Houston US, while some of its shares trade in New York. If completed, the deal would be the first in Iran for Schlumberger since international sanctions forced the company to leave in 2010.

Reportedly, NISOC has 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 on November 24.

According to Fereydoun Hassanvand, the head of Majlis Energy Commission, who was talking on the sidelines of the signing ceremony, cooperation with international companies  can help create jobs and ease the unemployment problem in the region.

"The parliament will support any measure aimed at transfer of technology and attracting investments," he noted, saying that cooperation with major companies will help augment economic growth.

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 also 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.

Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil/gas industry.

Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production and integrated pore-to-pipeline solutions for hydrocarbon recovery that optimize reservoir performance