60833
Shell has signed an agreement to study three oil and gas fields.
Energy

Shell Poised to Win Iran's Kish Gas Field Contract

Tehran may have to scrap plans for holding an international tender to develop a natural gas field in the Persian Gulf as foreign companies have shown little interest in taking on the upstream exploration project.
"Royal Dutch Shell is the only foreign company to show interest in developing the Kish gas field. Therefore it is likely that we will negotiate and award the field's development contract to Shell in lieu of a tender," Noureddine Shahnazizadeh, chief executive of Iran's Petroleum Engineering and Development Company (PEDEC) said, IRNA reported on Sunday.
"Shell has signed a memorandum of understanding to study the field in six months. It has four months to submit its plans. An Iranian company has also expressed readiness to finance the field's development, but the tender so far is in doubt."
Kish field is part of a trio of oil and gas fields that Shell is studying under an agreement it signed with PEDEC in December. The Anglo-Dutch company is also conducting technical surveys on the South Azadegan and Yadavaran oilfields which are shared between Iran and Iraq.
The agreement was signed by Hans Nijkamp, the head of the department for Iran affairs at Royal Dutch Shell, and Shahnazizadeh in Tehran.
Discovered in 1968, Kish gas field is located 30 kilometers east of Lavan Island in the Persian Gulf. The field holds an estimated 1.3 trillion cubic meters of natural gas in place and more than 500 million barrels of gas condensate, an ultra light grade of oil.
Kish field is planned to be developed in five phases, with the first phase reportedly making some progress. It is the second biggest gas field in the Persian Gulf after the giant South Pars field that is shared by Iran and Qatar.
The announcement by Shahnazizadeh sends the signal that Iran's new oil and gas development projects have received a lukewarm response by multinationals despite Tehran's high hopes to attract foreign investment and technology in its key petroleum industry, using a new model of contracts.
Foreign companies are also getting cold feet about investment in Iran following growing discord between Tehran and the Trump administration that led to blacklisting several Iranian entities and individuals last month.
Major foreign companies, most notably France's Total and German chemical producer BASF, have said their plans in Iran hinge on the future of sanctions.

Short URL : https://goo.gl/vXSO9Y
  1. https://goo.gl/Np4VRu
  • https://goo.gl/uqNjMI
  • https://goo.gl/7T8MtX
  • https://goo.gl/pJHxYy
  • https://goo.gl/6UDZsS

You can also read ...

Iran's neighbors are in critical need of natural gas to meet their rising energy demand.
International companies should seize new opportunities for...
Gasoline exports rose 25% in March.
China exported record volumes of diesel in March and boosted...
OPEC’s basket of 13 crudes stood at $50.48 a barrel on April 20.
Iran's crude oil traded above $53 a barrel in the week to April...
Water, Power Engineering Exports Noteworthy
The water and power sectors have made a significant contribution...
Schlumberger Revenues Grow
The US shale revival helped Schlumberger report its first annual...
Mexico Oil Sector Slumps
Mexico's oil shipments to the US fell to a new low this month,...
R&D Agreement With  Norway Co.
The Petrochemical Research and Technology Company signed a...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus