Iran’s NIOC welcomes interest shown by companies regarding oilfields

Business Materials 15 April 2019 15:47 (UTC +04:00)

Baku, Azerbaijan, April 15

By Elnur Baghishov – Trend:

The National Iranian Oil Company (NIOC) welcomes the interest shown by companies in the signing of the IPC (Iran Petroleum Contract), Karim Zobeidi, Director of Integrated Planning and Director at NIOC, told ISNA, Trend reports.

According to Zobeidi, currently several Iranian companies are interested in discussing several oilfields.

Zobeidi stated that discussions are being held on the development of the North Yaran oilfield (jointly operated with Iraq) by the Execution of Imam Khomeini's Order (EIKO) together with the Persia Oil and Gas Industry Development Co., and of the Sohrab oilfield (jointly operated with Iraq) together with Dana Energy.

“Proposals have also been made for the development of the Sumar oilfield (located in Iran’s western Kermanshah Province)," he said.

Zobeidi went on to say that these companies have evaluated the data from North Yaran and Sohrab fields.

As to negotiations being held with foreign companies, Zobeidi said that foreign companies are currently not involved.

With the implementation of the Joint Comprehensive Plan of Action (JCPOA) in 2016, the Iranian Oil Ministry announced new oil contracts for the development of oil and gas fields. The first deal was the contract for the development of the 11th phase of Iran’s South Pars Gas Field, which was signed between France's Total S.A. (50.1 percent), China's China National Petroleum Corporation (CNPC)(30 percent) and Iran's Petropars (19.9 percent) in July 2017.

However, with the US pulling out from the JCPOA in May 2018, Total announced its withdrawal from the contract. The Iranian side then entrusted Total’s share to the CNPC. However, it has been reported that the Chinese company has undertaken no action since then.

The 2nd IPC contract for increasing the production of Aban and Paydare Gharb oil fields was signed between NIOC, Russia’s Zarubezhneft and Iran's Dana Energy in March 2018. In the same month, NIOC and the Pasargad Energy Development Company (PEDC) signed the 3rd IPC contract for the development of Sepehr and Jofeir oilfields.