Baku, Azerbaijan, May 12
By Khalid Kazimov - Trend:
Khazar Exploration and Production Company (KEPCO) and Iran's Gilan Province have joined efforts to lay the groundwork for developing the Sardar-e Jangal oil field off the northern coasts of the Islamic Republic in the Caspian Sea.
Acting manager of the KEPCO Farhang Khatibi and Governor-General of Iran's Gilan Province Mohammad Ali Najafi have said that they are working together to facilitate the development project of Sardar-e Jangal oil field, SHANA news agency reported.
Mohammad Ali Najafi expressed support for foreign companies to invest in Sardar Jangal oil field and said his office has taken all necessary measures to pave the way for foreign investors to operate in the oil filed. He further asserted that there will be no obstacles against investment in the project and the governor general will give full support for the project.
Elaborating on the plans to implement the project Khatibi said that the country is currently in talks with Norway to develop the oil field. Khatibi expressed hope that the newly designed petroleum contracts, called the Iran Petroleum Contracts (IPCs) will contribute to finalizing the talks with foreigners.
The Sardar-e Jangal oil field is estimated to contain 2 billion barrels of oil in place, out of which 500 million barrels can be extracted. Iranian government under heavy sanctions had rejected plans for developing the field due to technological and financial constraints but now with the removal of international sanctions Tehran has included the Sardar-e Jangal in the list of 50 projects to be developed by foreign investors within the new model of petroleum contracts. Iranian Oil Ministry said that the country needs $400-$500 billion worth investments to develop its oil industry.
Developing the upstream sector of Iran's oil industry alone requires $200 billion. Therefore, the Oil Ministry is drawing up plans to lure foreign investors, by introducing the IPCs.
By holding 157.8 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil. The Islamic Republic also holds 34 trillion cubic meters of proven gas reserves, sharing 18.2 percent of total global gas reserves.