The Iran Project

NIOC signs second major oil deal this year: Tasnim

file photo shows Iran flag.

Press TV – The National Iranian Oil Company (NIOC) was to sign on Saturday the development of two more oilfields with a local holding company, Tasnim news agency reported.

“The contract for the development of Jofeir and Sepehr oilfields will be signed between NIOC and the Pasargad Energy Development Company (PEDC)” in the presence of Minister of Petroleum Bijan Zangeneh and NIOC Managing Director Ali Kardor, it said.

PECD is owned by the Pasargad Financial Group, which includes a number of businesses such as Pasargad Bank.

The Jofeir oilfield in the southwestern province of Khuzestan on the Iraq border is estimated to hold 2.1 billion barrels of in-place reserves.

Sepehr is part of the West Karoun block which includes several large oilfields straddling the Iran-Iraq border, namely Azadegan, Yaran, Yadavaran and Darkhoein.

The block holds an estimated 67 billion barrels of oil in place, including 2 billion barrels at the Sepehr oilfield.

Production from the West Karoun oilfields nearly doubled in the past year, where 305,000 barrels per day (bpd) of crude oil was produced, according to Zangeneh.

On Wednesday, NIOC signed a $742 million deal with Russian state-owned energy firm Zarubezhneft to boost production at the Aban and Paydar oilfields in the country’s west.

Under the deal between Zarubezhneft and Dana Energy, a private Iranian company, will jointly develop the fields in Ilam province near the Iraqi border to boost production from 36,000 to 48,000 bpd.

The agreement was the first oilfield development deal awarded to a Russian company and also the first oil deal sealed through the new format of Iran’s oil and gas contracts known as the Iran Petroleum Contract (IPC).

Under the new format, different stages of exploration, development and production are offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.

Zangeneh told reporters after the signing that the project would fetch Iran as much as $4 billion in national revenues.

Officials have said Iran will have signed three oil deals before the end of the current Persian year on Wednesday, which will include operation of the fields for 20 years.

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