Internationals Line Up for Cheshmeh Khosh Oilfield

Iran's state oil company NIOC is evaluating development proposals of foreign companies for Cheshmeh Khosh Oilfield in western Iran.

NIOC is reviewing development proposals submitted by Russia’s Gazprom Neft, Austrian oil and gas company OMV and Malaysia’s state oil company Petronas for Cheshmeh Khosh Oilfield 80 kilometers east of Dehloran in Ilam Province near the border with Iraq, ISNA reported on Tuesday.

According to reports, the two European companies aim to maintain the current output of Cheshmeh Khosh, but Petronas' proposals entails plans to boost production.

Cheshmeh Khosh has two reservoirs, one of which recently started production from the second reservoir, which stands at 20,000 barrels of oil per day.

Based on the report, Asmari and Bangestan reservoirs are projected to have oil recovery rates of 27-35% and 6-8%, respectively, once their development plans are complete.

Iran is also drawing around 3 million cubic meters of natural gas a day from the Cheshmeh Khosh field that was commissioned over 40 years ago.

Gazprom has taken steps to reinforce its position in Iran's energy market. Gazprom Neft, the oil arm of Gazprom, signed an agreement with OMV in June to work in Iran's oil sector, with the Austrian company to help Gazprom Neft in the initial geological assessment of two blocks.

The Russian company has also presented its development plan for Iran's Azar and Changuleh oilfields.

Gazprom is to provide NIOC with the result of its technical surveys and development plans for three Iranian offshore gas fields in the Persian Gulf, namely North Pars, Kish and Farzad gas fields, by April 2018.

OMV, which had signed a preliminary agreement in January 2017 to study Band-e-Karkheh Oilfield in the southern Khuzestan Province, will take charge of the field's development under a new style of contracts, known as Iran Petroleum Contract, according to Alireza Zamani, who supervises the field's development.

Earlier this year, Amirhossein Zamaninia, deputy oil minister for international affairs, said Iran is determined to finalize talks with Pertamina over the development of Abteymour and Mansouri oilfields, both near the city of Ahvaz in Khuzestan Province, by the end of the current fiscal in March 2018.

Pertamina signed a nondisclosure agreement last fiscal, which ended in March 2017, to conduct studies on the two oilfields. The company submitted a master development plan for the fields in March.