NISOC Signs Deal with Consortium
The National Iranian South Oil Company (NISOC) has signed its first confidentiality agreement with a consortium of foreign companies based on a newly developed framework.
The agreement was signed for conducting studies on Karanj oil field (Asmari, Pabedeh and Khami reservoirs) and Shadegan oil field (Asmari and Bangestan reservoirs).
The non-disclosure agreement was signed between Bijan Alipour, CEO of NISOC, and three representatives from PERGAS consortium of 11 European, Canadian and Asian companies plus Sharif University of Technology.
The consortium will have up to 6 months to submit the findings of its studies. In case it manages to present the preliminary plan for the development of the envisaged fields, it will be examined.
NISOC said the study project would be assigned to other companies or consortiums, and finally the most qualified one will be chosen for developing each field.
NISOC-developed framework of agreement is modeled on Iran's new model of oil contracts. Details depend on the conditions of fields and the technical structure of NISOC. This model is to be implemented for the first time in the petroleum industry.
Upon the endorsement of Iran's petroleum minister Bijan Zangeneh, Parsi, Karanj, Rag Sefid and Shadegan oil fields, which include nine reservoirs, are set to be developed based on the NISOC model.
London-based PERGAS (active in engineering and management of investment in the petroleum industry), Norway's AGR (involved in drilling and engineering design), Middle East's SPEC (involved in building production plants), Oilserv (active in upstream operations), Britain's LOOBY (involved in equipment manufacturing), Philippine National Oil Company (PNOC), Britain's Standard Handson (involved in financing and investment) and Sharif University of Technology form the consortium led by PERGAS.
Turkmenistan-Azerbaijan Gas Swap to Generate Revenue for Iran
The deputy head of Ghadir Investment Company for investment and business development, Mansour Kan'ani, has said that Iran would be gaining IRR 1,000 billion in revenue from a deal signed for Turkmenistan to swap 5 mcm/d of gas with the Republic of Azerbaijan via Iran's soil.
The location of big oil and gas producers in the region and the existence of a vast energy consumption market have created appropriate conditions for Iran to become the route of oil and gas swap and transit in the region.
The largest oil and gas reserves in the world are in Iran or neighboring countries. Iran could make great contribution for transferring them to consumption points.
Iran's northern neighbors deliver part of their oil, gas and oil products to destination markets via Iran. The unique geographical location of Iran gives the country the status of a secure route for energy transit.
The Republic of Azerbaijan has been swapping gas with Nakhichevan autonomous republic for years, but recently Turkmenistan started gas swap with Azerbaijan.
Kan'ani said the gas companies of Azerbaijan and Turkmenistan have agreed on the transfer of 5 mcm/d of gas via Iran between the two countries.
He said that the volume of gas swap between Turkmenistan and Azerbaijan via Iran is planned to increase to 7 mcm/d.
By delivering Turkmenistan's gas to Pakistan, Persian Gulf and Europe, Iran plans to stabilize its foothold in the energy market.
Russia's gas is also planned to be taken by Iran to consumers in the Persian Gulf. Relevant talks are yet to be finalized.
In addition to gas swap, Iran has also plans under way for oil swap. After resolution of international problems and provision of necessary infrastructure, Iran would be bringing the capacity of crude oil swap and transfer from northern neighbors to consumers to 2.5 mb/d.
Golden Change for Danish Firms
Danish Ambassador to Tehran Danny Annan has said that cooperation with Iran is a golden opportunity for Danish companies.
"Companies active in the energy sector in Denmark are interested in investing in South Pars gas field," he said.
Annan was speaking during a visit to South Pars gas field along with a Danish business delegation. The Danish delegates toured South Pars development and then attended a meeting with Pars Oil and Gas Company (POGC) to exchange views about cooperation in the energy sector.
Annan was surprised at Iran's significant progress in the development of South Pars gas field, adding: " All representatives of Danish companies and I did not expect such progress and we were caught by surprise."
He said that it would be a golden opportunity for Danish companies to be involved in the South Pars development. He expressed hope that grounds for cooperation would be provided.
He added that Danish companies active in the energy sector were willing to invest in South Pars gas field.
The Danish ambassador highlighted the low cost of oil and gas extraction in Iran, compared with North Sea, as a competitive advantage in Iran. He said that his advantage was pushing Danish firms to invest in Iran.
Annan said drilling operations as well as oil and gas extraction in Iran are in appropriate conditions, noting that many international companies have been convinced to show interest for investment in Iran's oil and gas sector.
"Given our knowledge of this zone and this company during this visit, in case of Iran's eagerness we will introduce companies to negotiate for the start of cooperation," said the Danish diplomat.
During their stay in Iran, the Danish business delegates also held talks with Iranian petroleum industry officials.
Iran Eyes Europe, Africa Offshore Oil Projects
The CEO of Iranian Offshore Engineering and Construction Company (IOEC) has announced plans for Iran's participation in offshore oil projects in Europe and Africa.
"There are equipment and experiences in offshore oil projects in Iran. They are unique in the region; therefore, it would be possible to export these services to other countries. In this regard, we have reached agreement with a Dutch company in order to use one another's equipment in the projects if need be," Abdol-Qasem Rahmani said.
"Talks have been held with a number of international companies for operating projects in the Black Sea (Europe) and Nigeria (Africa)," he said.
He noted that these agreements were yet to be finalized, adding that final talks have not yet been held.
Regarding projects under way overseas, Rahmani said: "A project which is to come online in 2017, is related to offshore pipe-laying for a gas pipeline in Europe."
He also referred to IOEC's plans to participate in African oil projects, saying: "One project concerns construction of 500 kilometers of oil pipeline. We are now in talks for its finalization and startup. Of course for operating projects in Nigeria there are some security issues which we are examining."
Iran used to depend on other countries in its offshore industry and for implementing offshore oil projects like the construction and installation of oil platforms and building offshore pipelines. But now the country has become self-sufficient in this industry.
Development of both onshore and offshore phases of South Pars has improved the offshore industry and over recent years several new platforms were installed and launched in different phases of South Pars in recent months.
The latest gas platform launched in the country belongs to Phase 21 of South Pars gas field. With a capacity of 1 bcf/d of gas, this platform became operational by Iranian experts.
The offshore technological growth in Iran has reached a stage where many countries have shown willingness for partnership with Iran, particularly after international sanctions were lifted on Iran.