SP11 Deal Heralds Foreign Firms Return
Iran's Minister of Petroleum Bijan Zangeneh said Iranian companies faced no restrictions for involvement in the deal signed with France's Total for the development of Phase 11 of South Pars gas field.
"There are no restrictions to the participation of Iranian companies in this contract," Zangeneh said after the deal was signed in Tehran.
He said that Iranian companies would take care of such services as drilling, construction of platform and pipe laying.
"It is estimated that this figure would be around 70%. Furthermore, dozens of Iranian companies and manufacturers would make gains and tens of thousands of jobs will be created in Iran," said the minister.
Concerns Allayed
Zangeneh said the signature of thedeal with Total would remove doubts about investment in Iran.
"With the signature of this agreement, foreign companies will see their doubts removed for investment and work in Iran," he said. "The signature of this contract will be a start for the return of companies that are willing to invest in Iran; not only oil companies but also non-oil firms, because this contract sends a very important signal to European and Asian businesspeople for return to Iran for investment," he said.
Tender Bid under Way for Azadegan
Zangeneh said the tender bid for Azadegan oil field was under way, but he refused to say which bidder would have the highest chance to win the contract.
He said a number of companies had been officially invited to bid for the project, adding: "The companies have been invited at two levels – leader and co-operator – to bid for the project."
The minister said companies have first to submit their technical and then financial proposals.
He added that a large number of companies had shown interest for presence in the Azadegan tender bid.
Zangeneh said the conclusion of deal with Total for the South Pars development would facilitate negotiations for more contracts, adding that the texts of new agreements would be different, but they would follow the same lines.
Russians Welcomed
Asked if the new round of US Senate sanctions against Russia would cause any problem in oil cooperation between Iran and Russia, the minister said: "If Iran is to respect the US Senate sanctions it will be itself the first country to have slapped with the sanctions."
Zangeneh said the fresh Senate sanctions were "illegal", adding: "They are not entitled to make decisions for others. I believe that Russian companies can come to Iran for the development of oil fields under competitive conditions."
Oil Market Unforeseeable
The Iranian minister also said that oil market remained unpredictable as a variety of factors are involved.
"The problem that currently exists is that US oil production rate has surpassed OPEC's forecasts and at present there is consensus on waiting to see the impacts of [OPEC] production cut," said Zangeneh.
"The percentage of compliance with agreed upon rates is very good. OPEC members have been 100% complaint and some have even been compliant more than 100%. That would affect the market," he added.
"You must have seen in the market that the trend of oil price fall has been reversed and the prices go up; however, the oil market remains unforeseeable," said the minister.
Maersk a Qualified Company
Zangeneh also said that Denmark's Maersk was the most qualified company to develop the oil layer of South Pars gas field.
"But we never restrict ourselves to a single company," he added.
"However, Maersk which was active in the Qatar-owned sector of this layer for years is willing to develop the oil layer of South Pars," said Zangeneh.