Dana Energy Set to Seal International Deals
Dana Energy is one of the companies approved by Iran's Ministry of Petroleum to operate in the Exploration and Production (E&P) sector. Since last year, it has signed six Memorandums of Understanding with National Iranian Oil Company (NIOC) and foreign companies to act as an operator or non-operator in developing oil and gas fields.
Mostafa Khoee, President of E&P and Board Member of Dana Energy, says the findings of technical studies conducted under MOUs have been submitted to NIOC. In an interview with Iran Petroleum, he expressed hope that Dana Energy would act as a leading player in the development of Iranian fields.
The full text of the interview with Khoee is as follows:
Q: More than a year has passed since the Dana Energy qualifications were approved by Iran's Ministry of Petroleum for operation in E&P sector. What have you since done?
A: Ever since we decided to work as an E&P company we sketched out a roadmap for moving ahead. From the very beginning, our decision was to work both as operator and non-operator; signing operator agreements independently with NIOC for the development of small and medium-sized fields and serving as non-operator and local partner to international companies in field development.
According to our planning and objectives, we will become a leading Iranian E&P company over the coming five years. After five years, in addition to our partnership with foreign companies, Dana Energy is looking to gain a 100,000 b/d share in oil production.
Q: Is it a big objective?
A: Of course it is. However, achievable. We have taken significant steps over the past year to become “partner of choice” for E&P projects. All these steps are aimed at reaching the production target we have foreseen.
Q: You have signed six MOUs with international firms and NIOC. Would you please outline them?
A: Yes, we recently signed an MOU with NIOC to serve as an independent operator in studying Sepehr and Jufayr fields. In addition, we have signed four MOUs with three European and one Russian companies to act as the Iranian local partner for the joint study and bidding on the following fields: Band-e Karkheh, Changuleh, Sohrab, Paydar Gharb and Aban field.
In projects where we are the operator party, we will choose a foreign non-operator partner, as requested by NIOC. We are currently in talks with foreign companies that have been operators to join us as our non-operator partner in these projects. The estimated investment for the two fields (Sepehr and Jufayr) is around $2 billion.
In the projects where we act as non-operators, our share will vary from 10 to 30% depending on the size of the project. In this sector too, we will have an effective role in the implementation of project.
Q: Have the results of MOUs you signed to serve as non-operator been specified?
A: The results of studies conducted on three fields, have been submitted to NIOC and most technical proposals submitted have been accepted by them.
Q: So you have started talks for signing agreement?
A: Yes, we are currently in talking stages for the signing of agreements.
Q: Have you specified the model of development for the field?
A: Yes, the fields for which MOUs have been signed are brown and green fields. NIOC insists that we apply enhanced recovery methods to increase and preserve production from the fields. For this purpose we will be using the latest technology.
Q: What will be the framework of your cooperation with foreign companies?
A: Two approach were taken by foreign companies: Some had chosen their Iranian partners when they were signing their MOUs with NIOC before starting their studies, and others decided to conduct studies initially without seeking an Iranian partner and only to make a decision when they reached the signing of contract stage.
As for Dana Energy, we were chosen as the foreign companies partner before the