Pertamina Set to Discuss Role in Khuzestan Oilfields

A delegation of Indonesia's state-owned oil and gas company Pertamina is scheduled to meet with representatives of the National Iranian Oil Company in Tehran to discuss technical issues pertaining to a potential agreement to develop Abteymour and Mansouri oilfields, deputy oil minister for international affairs said.

“Iran is determined to finalize talks over Abteymour and Mansouri oilfields, both near the city of Ahvaz in Khuzestan Province by the end of the current fiscal in March 2018,”Amirhossein Zamaninia was also quoted as saying by NIOC's news portal on Monday.

"Pertamina signed a nondisclosure agreement last year to conduct studies on the two oilfields. The company submitted a master development plan for the fields in March."

The deputy minister noted that the proposal is being reviewed by NIOC experts, "but technical issues need to be discussed in details."

Attaching great importance to boosting recovery factor in the two hydrocarbon reserves, the official added that the fields are being studied by other domestic and international firms, namely Lukoil, Russia’s second-largest oil company, as well as international oil and gas consortium Pergas and MAPNA Group.

There is a close race between Russia's Lukoil and Indonesia's Pertamina to develop the onshore oilfields, according to Zamaninia who said Pertamina has shown more interest in undertaking the project.

"Based on Pertamina's proposal, the number of oil wells in Abteymour field will increase from the current 50 to 257. Moreover, the recovery rate will rise from 2.27% to 12% and daily crude production will finally reach 300,000 barrels per day," he said.

Zamaninia added that a prospective agreement between NIOC and Pertamina on Abteymour and Mansouri will mark the first cooperation between Iran and Indonesia's state oil companies. Collaboration with Pertamina is aimed at transferring know-how to tap into Iran's massive hydrocarbon reserves.

According to Indonesia's Coordinating Maritime Affairs Minister Luhut Pandjaitan, Jakarta is seeking a commitment from the Iranian government on the exploration of the two fields in Iran.

"The discussion about two oil blocks, that have around 3 billion barrels of oil reserves, have been on and off. We want to know if they will give them to us or not," Pandjaitan was quoted as saying by Jakarta Post on Monday.

  Parallel Talks

Zamaninia said Tehran is in parallel talks with about 25 domestic and foreign energy companies to develop joint oilfields.

Iran shares 28 oil and gas fields with its neighbors, mainly with Saudi Arabia, Iraq and Qatar.

"Plans are in place to conclude 10 contracts by March 2018 with Russian, Asian and European multinationals and should negotiations go ahead as planned, up to $50 billion in investments will be attracted," he said.

The NIOC deputy said most of the memoranda of understanding to study the hydrocarbon deposits have been signed with Russian companies like Gazprom Neft PJSC, Tatneft and Zarubezhneft.

Expressing optimism on signing more deals like the one with Total S.A. to develop South Pars Phase 11, he said, "I assure you that other oil and gas agreements will be finalized by March."

Pointing to Russian firms' enthusiasm to play an active role in Iran's energy initiatives, he noted that it is very likely that the next major deal will be clinched with a Russian company in less than four months.

Iran is pushing for new deals with multinationals to raise crude production despite a global oversupply and persistently low prices. It is now pumping close to 4 million barrels a day, a level last seen before the tightening of sanctions in 2011.