Oil Contract

NIOC inks 1st IPC deal

TEHRAN, Oct 04 (Shana) – The ice of inking an Iran Petroleum Contract (IPC) is finally broken as National Iranian Oil Company (NIOC) entered a crucial deal with Iranian Persia Oil & Gas Industry Development Co. (POGIDC) for an increase in output level of several Iranian oil fields and reserves.

Under a deal signed between the two parties daily crude output of the oil fields North Yaran and South Yaran and the Koupal and Maroon reservoirs will increase up to at least 260,000 barrels per day from 185,000 barrels per day now.

The NIOC expects under the deal that in light of developmental activities of Tadbir Energy Development Group in North Yaran, South Yaran, Koupal and Maroon, the crude output of the fields and reservoirs will increase to at least 260,000 barrels per day from former 185,000 barrels per day, said Ali Kardor, the NIOC managing director, in the ceremony for conclusion of the Heads of Agreement (HoA) by the NIOC and POGIDC.

Kardor said the four fields have 14.5 billion barrels of in-situ oil in their reserves and relying on the current rater of recovery, the amount of recoverable oil reserves in the fields stands at about 2.5 billion barrels.

Kardor underlined using the state-of-the-art technologies for implementing methods for increasing recovery from the four fields and said for the time being, the recovery coefficient of Yaran field is about 10 percent, that of Bangestan reservoir of Maroon field at about 9.3 percent, that of Bangestan reservoir of Koupal oil field at about 13 percent, and that of Asmari reservoir at more than 18 percent.

Kardor said, “Today, the HoA of four fields and five oil reservoirs will be signed. Hence, the principles and frameworks of the contract for development of the reservoirs will be clarified and executive works will soon begin.”

He noted that $2.2 billion needs to be invested in projects for development of the fields, and hoped that POGIDC is as qualified and capable as foreign companies.

By SHANA