Baku, Azerbaijan, Apr. 18
By Fatih Karimov - Trend:
Iran is in talks with China for the development of Yadavaran field's phase 2, said Abdolreza Hoseininejad, CEO of Oil Engineering and Development Company, Fars news agency reported April 18.
The field's master development plan (MDP) is almost concluded, Hoseininejad said, adding Iran is currently in talk with Sinopec for developing the phase.
Development of Yadavaran oil field has high importance for Iran due to its high reserves and being shared with Iraq, he said.
Iran seeks to reach a buyback agreement with Sinopec over the development of the field, however if agreement couldn't be reached, the project will be offered within the framework of the IPC (Iranian petroleum contracts).
Once the second phase of the field is developed, its output will increase from the current level of 85,000 to 180,000 barrels per day, he said.
Hoseininejad said last January that Chinese companies have recently proposed very high prices for developing Yadavaran field's phase 2 and they need to reconsider their offers.
However, he noted, Chinese companies are Iran's "strategic partners" because they kept offering their cooperation in times when Iran was under economic sanctions.
Yadavaran, North Azadegan, South Azadegan, North Yaran, and South Yaran oil fields are dubbed the West Karoun oil fields. The Economy Council of Iran has approved the development of West Karoun oil fields as the largest joint oil fields development plan.
Investment of some $15.2 billion is projected for the plan over the course of four years.
The production capacity is scheduled to reach 1.4 million barrels per day by 2021.