Iran to introduce new oil, gas fields in London conference

TEHRAN (FNA)- The Iranian Oil Ministry plans to hold a conference in London to put to tender investment in its oil and gas fields which need further development, a senior energy official announced on Monday.

Managing director of the Petroleum Engineering and Development Company (PEDEC) Abdolreza Hosseinnejad reiterated that Kish and Salman gas fields will be introduced at London conference as they need investors through buyback contracts.

“We are looking for investors for development phases 2 and 3 of Kish gas field which are offshore,” the energy official announced.

Hosseinnejad reiterated that Phase 3 of Darkhoveyn gas field will also be put to tender for a buyback deal.

Hosseinnejad also pointed to Azar oilfield, and said that investment in the field will be done through buyback contracts and energy funds.

“We are also looking for an investor for Changouleh oil field in the vicinity of Azar oilfield,” he added.

Last month, Head of the Oil Ministry’s Committee for Oil Contracts Revision Seyed Mehdi Hosseini said that the Iranian Oil Ministry is negotiating with giant oil companies over investment in Iran’s energy sector, and the revised oil contracts will be presented in a gathering in London in the coming months.

“As planned, the revised contracts will be unveiled in the presence of representatives of all major oil and gas companies in London in September 2015,” Hosseini told FNA on Saturday.

He noted that the outcome of the recent nuclear negotiations in Lausanne, Switzerland, will have positive outcomes for the conclusion of contract with foreign oil firms.

Mehdi Hosseini said the revision of oil contracts and removal of such obstacles as international sanctions are expected to persuade international oil companies to return to Iran’s energy sector.

He said enhanced oil recovery and transfer of the state-of-the-art technology are the most important elements for revising the oil contracts.

“We are benefitting from all experiences of the past in order to improve the structure of oil contracts while taking into account mutual benefits,” he added.

Hosseini said buy-back deals brought Iran’s oil production capacity to more than four million barrels a day and attracted tens of billions of dollars of investment in the oil and gas sectors.

In 1987, Iran’s parliament revised the Petroleum Law and finally buy-back contracts were defined.

Iran first signed buy-back deals in the 1990s when the country was still reeling from the destructive impacts of Iraqi war (1980-1988).

By Fars News Agency