TEHRAN, Oct 17 (Shana) – Deputy Minister of Petroleum Ali Kardor said that National Iranian Oil Company (NIOC) has released its first tender announcement for verification of the qualifications of foreign bidders.
“Such contracts are in the executive phase,” Kardor, who is also Managing Director of National Iranian Oil Company (NIOC), said in an address to an oil and energy congress here in Tehran on Monday.
Kardor said the tender notice has now been published in Iranian and foreign newspapers and foreign companies volunteering to run the bid will have to provide the NIOC with necessary information in a one-month deadline.
He said that having received the information, the rough list of the competent foreign bidders will be prepared to run new oil contract tenders and then the first tender will be held.
The official said to that end, a Heads of Agreement (HoA) has newly been signed with an Iranian company. “To be active within framework of the new oil contracts, Iranian companies should consider partnership with international companies and they should enter the stage with enough financial power.”
He said, “As announced earlier, per new oil contracts, Iranian companies will be allowed to be active in small and medium-sized fields as main leader of field development, while benefiting from cooperation of international companies. As for big fields, whose leadership rests with international companies, foreigners will have to cooperate with Iranian companies.”
Noting that international companies have welcomed cooperation with Iranian companies, Kardor said, “For the time being, 11 E&P qualified companies are identified in Iran and they are now not active in the field but should move in that direction. Now, 88 plans, 515 projects and 2,000 miniature projects are on the NIOC agenda and regarding the need for conclusion of two contracts for each miniature project, about 4,000 contracts will be signed.”
He said, “Our contracts will be result and field oriented to the extent that in the future, payments will not be in the form of bill of status but in proportion with the degree the goals are addressed.”
The NIOC Chief said activation of the private sector in the mid-stream oil industry sector is the most important mechanism of the NIOC.
He said based on the new strategies, the NGL and LNG projects will be fully entrusted to the private sector and to this end, the first contract for privatization of the NGL has been signed with a private sector active in the petrochemical industry.
Kardor said in the next month, the NGL 3100 will be entrusted to the private sector and Khark NGL will be privatized on an auction notice.
As for the Khark NGL auction, he said investment in the project has partly been done by the NIOC and since it is in the halfway, a mechanism for auction to privatize the project is needed.
Hence, in the near future, three key NGL projects of the oil industry will be entrusted to the private sector and effective steps will be taken to prevent flaring associated gases to protect the environment, said Kardor, adding that the contracts for entrusting the LNG projects to the private sector will be long-term and 20-year in nature and gas will be sold in the first 10 years from the date the contract is in force based on a fixed formula.
“The NIOC will not mediate in development of the LNG units and even foreign companies can assume 100 percent role in the projects.”