Baku, Azerbaijan, June 22
By Fatih Karimov - Trend: Iran has canceled the contracts, which were signed by the administration of former president Mahmoud Ahmadinejad, for developing some 19 associated and non-associated oil and gas fields.
Although Iran's Mehr news agency reported on June 18 that Iranian oil minister Bijan Namdar Zanganeh has cancelled the development of just non-associated oil and gas fields, except for those which have started production, Tasnim news agency reported on June 22 that the contracts for the development of 15 non-associated and 4 associated fields have been canceled.
The National Iranian Oil Company (NIOC) introduced around 41 projects, worth $100 billion, to foreign investors at the 21st World Petroleum Congress, which was held in Moscow.
Four associated fields, namely Sohrab oil field, Farzad gas field, Esfandiar oil field, and Phase 11 of the South Pars gas field, for the development of which NIOC had signed contracts, were also in the list of the projects. And this means that NIOC has cancelled the previously signed contracts, Tasnim reported.
NIOC has confirmed that the development of Zagheh, Kooh Kaki, Booshgan, Darkhovin, and Karkheh associated oil fields has been suspended.
The contract for the development of Zagheh had been signed with Russia's Tatneft Oil Company. Contracts for the development of Kooh Kaki and Booshgan fields had been signed with a Ukrainian company.
Iranian MP Saeed Heidari said that the focus will be placed on developing joint fields.
All the contracts with contractors will be canceled and the Oil Ministry will compensate for their losses, he added.
Heidari underscored that neighboring countries have been extracting much crude oil and natural gas than Iran from the associated fields.
Tehran has invested over $4.4 billion in its joint fields with Iraq to date, Iran's IRNA news agency reported in February.
Developing of joint oil fields which are located at the western side of Karoun River is among the top priorities of Iran's Oil Ministry
Once all the mentioned oil fields come on stream, over one million barrels per day will be added to the country's oil production capacity.
Over $20 billion is needed to be invested in the development projects of Iran's joint oil fields with Iraq.