Indonesia Interested in E&P Projects

Indonesia is willing to play an active role in Iran’s upstream oil and gas industry development projects, known as exploration and production (E&P).

Zulkifli Hasan, speaker of Indonesia’s People’s Consultative Assembly, made the statement on the sidelines of a meeting with Amirhossein Zamaninia, deputy oil minister for international and commercial affairs, in Tehran on Tuesday, the Oil Ministry news agency Shana reported.

Calling for closer energy collaboration with Iran, Hasan noted that the Indonesian state-owned oil and gas giant Pertamina wants to be a major player in Iran’s E&P ventures. The official referred to a nondisclosure agreement signed between the National Iranian Oil Company and Pertamina to survey Iran’s Abteymour and Mansouri oilfields, and said the Indonesian company is drafting a master development plan for the two oilfields.

“We are looking for win-win contracts in Iran’s energy sector,” Hasan added.

Mansouri Oilfield is located 60 kilometers off the Persian Gulf in Khuzestan Province. It holds an estimated 3.3 billion barrels of oil in place. Iran currently draws around 60,000 barrels per day from the field, but plans call for boosting output to 100,000 bpd initially and to 150,000 barrels in the long run.

Abteymour oilfield, which is close to Mansouri, is estimated to hold 15 billion barrels of crude. Output stands at around 60,000 bpd, but NIOC hopes to produce 110,000 bpd from the field.

Pertamina’s chief executive, Dwi Soetjipto has announced that Iran is one of Pertamina’s priorities. 

“We’re serious about investing in Iran’s upstream oil and gas, which will help Iran increase its oil production. As opportunities have been provided for foreign firms in Iran after the removal of international sanctions, we are prepared to collaborate with Iran in technology transfer.”

   LPG Exports Rise

Underscoring Iran’s readiness to provide Pertamina with crude oil, Zamaninia noted, “More cargoes of liquefied petroleum gas will be exported to Indonesia in the near future.”

Reportedly, Pertamina received the first shipment of LPG from NIOC on September 29. The cargo was 44,000 metric tons of LPG that had been transported from Iran’s Asalouyeh energy zone in mid-September.

According to the company’s Senior Vice President Integrated Supply Chain Daniel Purba, Pertamina needs LPG supply from Iran to meet high demand for the commodity. The two sides signed an agreement in August that covers LPG sales for 2016 and 2017.

  Technology Transfer

Iran is also discussing terms with Malaysia to acquire advanced knowhow for production of its rich hydrocarbon resources after years of underinvestment under an international sanctions regime.

Technology transfer in the field of exploration and production is a top priority, says Ali Kardor, the managing director of NIOC.

“The transfer of knowhow takes place with presence of oil service companies like drilling firms that prepare the detailed engineering design of the project, procure equipment and materials and then deliver a functioning facility or asset to their clients,” he said.