...

Some 70% of Iran’s recoverable oil reserves not developed

Business Materials 28 November 2015 13:35 (UTC +04:00)
Some 70 percent of Iran’s recoverable oil reserves are not developed, Roknoddin Javadi, deputy Oil Minister of the Islamic Republic said.
Some 70% of Iran’s recoverable oil reserves not developed

Baku, Azerbaijan, Nov. 28

By Umid Niayesh- Trend:

Some 70 percent of Iran's recoverable oil reserves are not developed, Roknoddin Javadi, deputy Oil Minister of the Islamic Republic said.

He made the remarks in a conference which is held in Tehran to present the country's newly designed oil contracts, called the Iran Petroleum Contract (IPC), Shana news agency reported Nov. 28.

Some of the world's biggest names in oil, gas, and petrochemicals industries gathered in Tehran Nov. 28 to attend the conference, during which Iran's Oil Ministry unveiled its IPC model contracts. Over 300 companies attended the event.

Javadi further said that holding 345 billion oil equivalent barrels of recoverable crude oil and gas reserves, Iran possesses the world's largest reserves of oil and gas.

The IPC contracts can provide an opportunity for the Islamic Republic to develop its unused recoverable oil and gas reserves, he said.

Iran holds 10 percent of global crude oil reserves equal to 158 billion barrels, Javadi said, adding the country has the potential to double its current output. The official further said that the Islamic Republic possesses the world's largest proven natural gas reserves, at 34 trillion cubic meters, or 18 percent of the world's total proven reserves.

Javadi, who is managing director of the National Iranian Oil Company (NIOC), said that about 50 upstream projects in oil, gas, and petrochemicals will be introduced to the foreign investors.

He further said that three important projects including development of Farzad B gas field as well as Yadavaran Phase 2 and Azadegan North Phase 2 oil fields are excluded from the projects because there are some ongoing negotiations about the three fields' development.

If the negotiations fail, the three fields' development will be introduced to investors during the next tenders, Javadi added.

Explaining the IPC contracts, Javadi earlier said that like buyback agreements, IPC is a form of purchasing service.

"The major difference between Iran's new contracts and buyback contracts remain that the developer contractor will be present for 15 to 20 years after the completion and launch of the project," Javadi said, adding the company in charge of engineering and development of the project should be held responsible during the period because their income depends upon the revenue generated from the project rather than being subject to its completion.

Tags:
Latest

Latest