Fate of all joint fields determined under Rouhani

SHANA – Iranian Minister of Petroleum Bijan Zangeneh said the fate of all Iranian joint oil and gas fields would be determined by the end of Iranian President Hassan Rouhani’s term as president.

Addressing a ceremony to sign a contract by the National Iranian Oil Company (NIOC) and Persia Oil and Gas Industry Development Company in Tehran on Saturday, Zangeneh emphasized the importance of joint fields for Iran’s oil industry as a necessity, saying: “Fortunately, we are working in South Pars with the maximum production capacity, ie recovering gas from 27 phases. Development of the two phases has been delayed due to the sanctions but they are being developed by Petropars. No new contract has been signed with Petropars, but after the withdrawal of two French and Chinese companies from the development project of Phase 11, their stocks was transferred to the Iranian side of the project, Petropars. There are two refineries left, one to be completed this [calendar] year (to March 20, 2021) and the other to be completed next year.”

Zangeneh pointed out that Bilal field, as the eastern side of South Pars gas field, is not an independent gas field and its contract has been concluded and is being followed up. “Farzad B Contract has been signed and the fate of Forouzan Field will be determined.”

He went on to add that the contract for developing Aban and West Paydar fields is being implemented, and said: “In this way, the fate of all joint oil and gas fields in the country will be determined by the end of the [Rouhani] administration.”

Zangeneh stressed that no IPC agreement would be concluded without the participation of an Iranian partner, adding that the South Yaran project was previously being developed by the PEDEC (Petroleum Engineering and Development Company) and North Yaran by Persia Oil and Gas Industry Development Company. The two contracts have been merged and its contract in an IPC format is signed with Persia Oil and Gas Industry Development Company.”

The Minister of Petroleum stated: “Considering the capacity of various contract models, we are pursuing the production maintenance and enhancement plan under EPC/EPD contracts, in which we have so far obtained more than $6 billion approvals by the Economic Council; the plan will be financed through the capital market. The advantage of these contracts is that the project will be awarded to the contractor in an interconnected set and the contractor will deliver oil. A list of equipment is attached to these contracts, which must be provided from inside Iran.”

Zangeneh said development project did not only concern join fields and included all the oil and gas fields in the country.