NISOC, Pasargad Energy Co. Sign Oilfield Agreement

NISOC, Pasargad Energy Co. Sign Oilfield Agreement NISOC, Pasargad Energy Co. Sign Oilfield Agreement

The National Iranian South Oil Company and Pasargad Energy Development Company signed a memorandum of understanding and a non-disclosure agreement on Sunday, based on which the latter will study three southern oilfields.

The agreement is an effort to develop Rag Sefid, Parsi and Shadegan oilfields in Khuzestan Province based on a customized framework developed by NISOC, reported IRNA on Sunday.

NISOC is in charge of developing four oilfields in Khuzestan, namely Shadegan, Rag Sefid, Karanj and Parsi with a total of nine reservoirs. 

Pasargad will have six months to complete its studies and submit a master development plan for the oilfields. It is a subsidiary of Bank Pasargad, a major private banking and financial services institution.

Officials say NISOC's model conforms to the outlines of Iran Petroleum Contract, the new contractual framework designed to develop dozens of oil and gas projects with  foreign investment. 

Ahmad Mohammadi, a deputy director at NISOC, said his company will sign preliminary agreements with more Iranian companies to study the huge hydrocarbon reserves in the south.

"We need to raise more than $10 billion to develop the four oilfields," Mohammadi said, adding that the development of each field is estimated to cost around $3 billion.

NISOC signed preliminary agreements last year with Schlumberger, the world's leading oilfield services provider, as well as with Pergas Consortium, a group of 11 international oil and gas companies, to study its oilfields.

According to reports, Schlumberger is expected to present a technical and financial proposal next month for developing Shadegan, Rag Sefid and Parsi fields. 

NISOC has also opened talks with Argentina's Pluspetrol, a leading private exploration and production company in Latin America, to develop and increase the recovery rate of oilfields in Khuzestan.

The agreements are part of efforts to ease the return of foreign oil and gas majors to Iran's petroleum market after years of underinvestment and economic isolation. 

The Oil Ministry has stipulated that multinationals must choose an Iranian partner in future oil and gas projects if they want a share in the energy projects.

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