Russian Zarubezhneft‏ ‏to take part in development of Iran’s oil field

Business Materials 17 February 2018 17:07 (UTC +04:00)

Baku, Azerbaijan, Feb. 17‎

By Gazenfer Hamidov – Trend:

Russian oil company, Zarubezhneft will take part in development of Iran's Susangerd oil field.

Zarubezhneft signed a Memorandum of Understanding on Feb. 17 with IDRO Oil, a subsidiary of Iran’s government-owned IDRO (Industrial Development & Renovation Organization), for cooperation in development of the oil field, IDRO said.

Under the deal, the parties will establish a joint working group in this regard. After achieving final agreement the side will negotiate with National Iranian Oil Company to sign development contract for Susangerd field.

Nasrollah Zarei, CEO of IDRO Oil said that his company was negotiating with various companies in last months to attract a reputable foreign investor for the project.

Finally after several rounds of preliminary talks a cooperation document signed with Zarubezhneft.

He estimated that Susangerd oil field’s development project needs $900 million investment.

Last May, IDRO signed a memorandum of understanding with the National Iranian Oil Company (NIOC) to carry out studies for development and increasing oil recovery rate of Susangerd, Cheshmeh-Khosh and West Paydar oil fields in partnership with a reputable international company.

Mansour Moazzami, managing director of the IRDO said last July that, after studies, IDRO will sign a contract for development and exploration of Susangerd oil field as well, putting the investment value for the project at $800 million to $900 million.

In last December, IDRO signed a MoU with Austria's HOT Engineering as international consultant for preparing a master development plan (MDP) for Susangerd field within 6 months.

Zarei added that after signing deal with the consultant, IDRO put preparing the field’s MDP on its agenda, forecasting that the proposal will be submitted to NIOC in late February.

Susangerd oilfield, which was discovered in 2009, is estimated to hold more than 6 billion barrels of in-place oil reserves.

It is planned that 30,000 barrels of oil to be extracted from the field on a daily basis.

It should be noted that last year, Russian Zarubezhneft signed a MoU with the NIOC to provide Iran with strategic methods for increasing the recovery rate in Aban and West Paidar oilfields after carrying out the needed studies. Iran shares the mentioned fields with Iraq.