Iran’s Ghadir in talks with SOCAR over oil projects

Business Materials 2 December 2016 12:15 (UTC +04:00)

Baku, Azerbaijan, Dec. 2

By Emil Ilgar – Trend:

Iran's investment company Ghadir has been negotiating with Azerbaijan's state oil company SOCAR, Russian Lukoil and Gazprom as well as Italian Eni to develop two joint fields in Iran, the company’s CEO Gholamreza Soleimani told IRNA Dec. 2.

He didn’t mention the fields’ names, but said that one of them is offshore and another is onshore.

“The fields need 2.7 billion euros and 1.6 billion euros investment,” he said.

Mohsen Pak Ayeen, Iran's former ambassador in Baku, told Trend Feb. 25 that Ghadir and SOCAR signed a memorandum of understanding in February 23 to jointly put investment in oil and gas projects.

Ghadir is among 11 local companies included by Iranian Oil Ministry to the exploration and production (E&P) list, capable of being involved in the new designed oil contract, called the Iran Petroleum Contract or IPC.

Iran is preparing to issue tenders on upstream projects based on IPC in two months.

Only E&P companies are allowed to participate in tenders. Based on IPC, a local company should choose a foreign partner to develop the projects and if a foreign company wins the tender, it must choose a local partner.

Iran needs about $100 billion of investment in upstream to develop 49 oil and gas projects based on IPC.

The country plans to increase its oil output to 5.2-5.7 million barrels per day by 2021.

Elsewhere, Soleimani said Ghadir would sign heads of agreements with Oil Ministry in coming two months, and then finalize selection of foreign partners to seal contracts.