Ghadir Investment Co. in Talks With Eni, Lukoil

Ghadir Investment Company is negotiating with Italy's oil giant Eni and Russia's Lukoil to jointly develop an offshore as well as an onshore oilfield in the west and south Iran, the company's managing director said.

“GIC will undertake the project with its international partners as soon as it gets approval from the Oil Ministry,” Gholamreza Soleimani was quoted as saying by IRNA on Friday.

Established in 1992 as a public joint stock company, GIC operates in key sectors such as oil, gas, petrochemicals and related industries. It is affiliated to Bank Saderat Iran.

According to the official, the names of the oilfields cannot be disclosed yet as the talks are still underway.

Soleimani said $5.7 billion in investment is needed for the venture.

"The formidable issue is banking," he said, noting that Eni and Lukoil are in talks with European banks to work out a way to finance the project. Moreover, the Central Bank of Iran is trying to pave the way for concluding the contract, he added.

Asked about the details of the expected venture, he said the GIC has signed a preliminary agreement with the Russian and Italian firms and the deal is expected to be finalized by the end of the current fiscal (March 2017).

Attaching special importance to Eni's interest in working in Iran's oil sector, Soleimani noted that the oil and gas company was to develop Phase 3 of Darkhovein Oilfield in Khuzestan Province and Phase 19 of South Pars Gas Field, but halted operations due to the international sanctions.

Claudio Descalzi, the Italian company's CEO said in August, "We are in discussions with the Iranians. We have always been there and have very good relationships. I don’t exactly know when we can sign a contract since there are still discussions in Iran and we are waiting like other companies." 

Eni is active in exploration and production sector as well as downstream projects, including refining and marketing of petroleum products. According to Iran’s Deputy Oil Minister Amirhossein Zamaninia, Russia's second largest oil producer Lukoil is also ready to resume Iranian oil projects. The Russian company has announced interest in   participating in enhanced oil recovery and improved oil recovery plans.

Lukoil chief executive, Vagit Alekperov, believes that Iran is of great interest to all oil and gas companies. The company reopened an office in Tehran in April last year.