Work Resumes on Foroozan Development Project

After two years of total halt in the development of Iran’s Persian Gulf oil field of Foroozan, work on the project has been resumed.

 Development of Foroozan and that of Esfandiar oil fields were originally defined in a single project and its implementation was supervised by Iran’s Petroleum Engineering and Development Company (PEDEC). In the new plan, however, Foroozan has been detached from Esfandiar and will be developed under the supervision of Iranian Offshore Oil Company (IOOC). IOOC has also floated a tender for development of Esfandiar oilfield.

 On Monday, 5th of this May, PetroIran, as the main contractor of the project, signed with IOEC an amended version of the original contract (signed with the JV of IOEC and British SLP in March 2005). The amended contract has excluded SLP from the project and has selected IOEC as its main EPC contractor, with SLP as its subcontractor.

The revised value of development of Foroozan is put at Euro 389 Mln and the project is foreseen to take 36 months to complete, from above date.

The workscope of the new project includes; building a Living Quarters (platform) to accommodate 70 people, fabrication of a gas Processing & Production platform, construction of a 150 km long 24” sub-sea gas pipeline, to carry some 250 mcf/d of Foroozan’s gas output to the Kharg Island, plus its inner-field piping.

The project’s budget will be provided by the internal resources of NIOC.                                                                               


     Inpex May Keep 10 Percent Share in Azadegan

Inpex Holding Inc. is in talks with the Iranian National Oil Company to regain its 10% share in the development of Iran's Azadegan oilfield.

Directors of Inpex apparently are in Iran to discuss the issue of regaining their 10 percent share in the development of Iran's huge Azadegan oilfield with the officials of the National Iranian Oil Company (NIOC), Fars New Agency reported.

Earlier, Iran decided to cancel the Inpex contract because of the company's neglect to perform its obligations.

Under heavy US pressures to isolate Iran for its uranium enrichment activities, which Iran says are being carried out for peaceful purposes, the government-backed Inpex was forced to exit the development of the project and limit itself to 10 percent financing.

The Azadegan oilfield, located in southwestern Iran, near the border with Iraq, was estimated to contain 33 billion barrels of oil but after further discovery operations a new layer of 2.2 billon barrels was added to its estimated reserves. Inpex originally had a 75% stake in the $2 billion development project, with the state-owned National Iranian Oil Co. holding the remaining 25%.

The field is expected to pump 150,000 barrels a day of crude by mid-2008, and 260,000 barrel per day by early 2012.
Construction at the Azadegan field was not easy. The area, about 500 miles southwest of Tehran, lies in a former battle zone of the Iran-Iraq war and is said to be rife with unexploded landmines, which are still being cleared.

Iran has spent more than $18 million for clearing mines so far.

Iran recently had announced it would develop Azadegan as the first major field to be developed solely by Iranian companies.

 

       Foreign Firms eye Azadegan Oilfield

Indian, Chinese and some European oil companies have requested participation in development of Azadegan oil field, says senior Iranian oil official.

Deputy Oil Minister Hossein Noqrehkar Shirazi said Iran has alternative choices between Indian, Chinese and Turkish companies for the development of Phase 12 of the South Pars field, adding discussions with two Indian companies were moving ahead seriously and soon one or two foreign oil companies would be chosen to develop the field's Phase 12.

Phase 12 is one of the largest phases of South Pars and Petro Pars is in charge of its development, which probably will choose its partner from among Indian, Chinese and Turkish companies soon, he added.

Iran is responsible for the development of 90 percent of the South Pars field, with the remaining 10 percent being under the responsibility of Japanese Inpex Company, while many companies have expressed interest in cooperating with Iran in the project.

The deputy oil minister went on to say that Iran was not interested in foreign companies' participation in some aspects of the development of Azadegan and Yadavaran fields and was planning to go it alone.

Azadegan is Iran's largest onshore oilfield and provides the best choice for foreign investment.

He concluded by saying that Iran tries to have bilateral and multilateral cooperation with Russian Gazprom Company in its oilfields as well as its gas fields.
 
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