Negotiations with two unnamed Russian oil companies on taking over the development rights of three Iranian oilfields are in the final stages, the National Iranian Oil Company’s deputy for international affairs said.
“The negotiations may lead to contracts within the next few weeks,” Amirhossein Zamaninia was also quoted as saying by IRNA on Friday.
The official did not name the oilfields.
Zamaninia added that talks with Russian companies have been prolonged, as Iran and Russia do not have a history of cooperation in the energy sector.
According to the official, Iran has signed 11 memoranda of understanding with seven Russian firms on carrying out geological studies on Iranian oilfields, registering a record in this regard among foreign companies from other countries.
Russian Energy Minister Alexander Novak also said last week that Russia’s oil companies could sign contracts with Iran by March 21, which would allow them to work on Iranian oilfields, Reuters reported.
Novak noted that Iran was ready to supply crude oil to Russia but that would depend on future agreements with oil buyers.
Although Iran has signed 36 MoUs with foreign firms on studying Iranian oilfields following the lifting of international sanctions more than two years ago, the country has not so far concluded a contract in the oil sector due to internal and international considerations.
Total finalized a gas deal worth $4.8 billion in July to develop South Pars Phase 11, which was named as Iran’s first contract with a foreign giant under the terms of Iran’s new contracts, dubbed Iran Petroleum Contract.
South Pars is the world's largest gas field shared by Iran and Qatar in the Persian Gulf. The mega gas project is being developed in 24 phases.
Total’s agreement paved the way for signing development contracts with other firms, among which Russian companies have speeded up the pace of talks.
Gas Transfer
Zamaninia referred to the first meeting of Iran-Russia workgroup for delivering natural gas from Iran to India and Pakistan via the Persian Gulf and the Sea of Oman, noting that NIOC and Russia’s Gazprom have agreed to study the establishment of a 1,200-kilometer pipeline from the port of Jask in the southern Hormozgan Province to the two countries.
In November, the two companies signed a memorandum of understanding, which opened the way to a study into the prospects of cooperation in the development of gas fields in Iran, gas transportation and monetization.
“There has been huge interest between NIOC and Gazprom on the prospects of the joint construction of Iran-Pakistan-India and Iran-Oman gas pipelines," NIOC chief Ali Kardor told Russian news agency Sputnik in December.
Alexander Medvedev, deputy chief executive of Gazprom, said in late 2016 that his company is ready to play a role in Iran's gas supply chain.
"We are keen to take part in exploration and production projects, LNG (liquefied natural gas) production and gas exports", including a plan to supply Iran's gas to India, Medvedev said.
"We are ready to participate in major gas projects, even if they're complicated. But collaboration should meet the interests of both sides."
