European firm to invest $3.6b in Iran gas field

Business Materials 9 March 2010 16:18 (UTC +04:00)

Iran has finalized technical and financial terms with an Eastern European company on a contract worth $3.6 billion to develop Lavan gas field, southern Iran, the head of Iranian Offshore Oil Company stated, without giving further detail on the company.

The Mehr News Agency quoted Mahmoud Zirakchianzadeh as saying that IOOC has reached an agreement with a European firm which has prepared the Master Development Plan of the Lavan gas field.

The Lavan gas field aims at producing 4 million tons of liquefied natural gas (LNG) and 600 million cubic feet of gas per year.

"The European company has received a state permit to participate in the project in Iran," he said.

The Lavan gas field, which was discovered in 2003, has in-place gas reserves of around 12 trillion cubic feet.

Turning gas into LNG for export purposes was the main objective in developing the Lavan gas field.

Iran has the world''s second-largest reserves of natural gas (roughly 15 percent of the world''s total) next to Russia. It contains an estimated 974 trillion cubic feet (Tcf) in proven natural gas reserves. About 62 percent of these reserves are located in non-associated fields.