“So far, PEDCO has bid for the Mansouri, Sousangerd, Mansourabad, Maroun (1-4) and Zilai fields,” he said, adding that successful bidders would be announced in July.
“Based on planning, NIOC Directorate of Exploration will soon tender out its exploration projects. Since foreign companies would not run due to sanctions, Iranian E&P companies can establish joint ventures to operate the projects,” he added.
Jamalzadeh said: “PEDCO has offered to develop the Siri, Mansouri, Sousangerd, Danan and the second phase of the South Pars Oil Layer.”
He said PEDCO had gained sufficient experience in the past two decades due to working alongside such giants as France’s total, Italy’s Eni, Royal Dutch Shell and Norway’s Statoil.
He added that PEDCO had already operated the Salman, Siri, Abouzar and the South Pars Oil Layer projects.
Jamalzadeh said the establishment of DCI prepared the ground for the formation of an E&P firm.
“Petroleum industry policymakers are required to give domestic companies the same privileges given to foreign companies under oil contracts so that the former would be able to work with foreign financing under new oil contracts,” he added.
He said PEDCO was in talks with several Asian companies to attract financing for EPDF projects, adding that the talks had led to the signature of MOUs.
He said PEDCO had found foreign partners to operate oil and gas projects in Iran. “We are waiting for NIOC to assign the project. Furthermore, an MOU has been signed between us and NIOC to study the Sousangerd and Danan fields. Therefore, we are focused on these fields,” he added.
IDRO-Oil Offer Awarded
Mehdi Davoud-Abadi, CEO of Gostaresh Iranian Oil and Gas Industries Development Company (IDRO-Oil), said his company’s master development plan for the development of the Sousangerd oil field had been chosen as the best one.
IDRO-Oil is a subsidiary of the Industrial Development and Renovation Organization (IDRO). IDRO-Oil is currently involved in the upstream oil and gas sector mainly in the projects offered for development under the IPC framework.
He said IDRO-Oil had signed an MOU with NIOC to make arrangements for studying the Sousangerd oil field.
Davoud-Abadi said IDRO-Oil had started activities to step into international markets in cooperation with its foreign partners. He added it would be a major step in the development of activities of Iranian oil companies in foreign markets under the current circumstances.
He said that IDRO-Oil had already bid for projects offered by National Iranian South Oil Company (NISOC) and the Iranian Central Oil Fields Company (ICOFC).
He added: “We have always faced the challenge of sanctions. The job might be difficult, but we will find ways to cooperate with our partners.”
Davoud-Abadi highlighted the role of Iranian companies operating oil and gas projects in increasing hard currency revenue, saying: “Undoubtedly, development of Iranian E&P firms would help upgrade the upstream oil sector.”
E&P Firms Unity a Must
Global Petro Tech Kish Company is among qualified E&P companies. Like some other E&P firms, Global Petro Tech is also faced with financing problems.
Some managers of this company told Iran Petroleum that buyback and EPC contracts would be suitable methods for the development of oil fields. They also said that partial sale of company assets could be also a good method for the financing of projects.
Global Petro Tech recently signed agreements to develop the onshore Sarvestan and Saadatabad oil fields.
Along with its Russian and Chinese partners, Global Petro Tech has also run for several new oil field projects in southern Iran. It is currently in two-year deferment talks with foreign partners. Talks are also close to finalization with a European investor for the development of the Sumar field.
Global Petro Tech is separately in talks with NIOC to develop the Sumar, Esfandyar and Changouleh fields.
Insurance Fund for E&P Firms
Mehdi Mir-Moezzi, head of Iranian E&P Firms Forum, criticized the existing administrative red tape as obstacles to the implementation of contracts. He said some obstacles were outside the Petroleum Ministry.
He said the non-existence of financing mechanisms to match contracts was another challenge in this sector.
He noted that Iranian banks refused to grant facilities due to high-risk upstream contracts, adding: “Setting up an insurance fund for Iranian E&P companies could hedge risks and encourage banks and financial institutes [to offer facilities].”
“We demand that NIOC assign the development of small and medium-sized fields whose development does not require big capital and advanced technology to E&P companies which would in turn team up to develop oil and gas fields,” Mir-Moezzi said.
Ab Teimour Development Eyed
Bahram Masoud, director of marketing at Iran Ofogh Industrial Development Company (IOID), said this company was dependent on foreign sources for the financing of projects.
“We have signed an agreement with a British consulting company for financing,” he said.
Masoud touched on IOID’s first-ever presence in exploration projects in the Caspian Sea in partnership with Shell and two other firms, saying: “IOID has 30 years of experience in offshore and onshore fields like those located in West Karoun.”
He added that IOID had signed more than 17 contracts with Italy’s Eni for engineering and logistics services to the Darquain oil field.
“After Eni left eight years ago, IOID has been in charge of maintenance of installations at the Darquain oil field,” he said.
Masoud said IOID was providing technical and engineering services to China’s Sinopec and CNPC in the West Karoun oil fields.
“After IOID was qualified as an E&P firm, it registered Ofogh Energy Company,” he added.
He said that IOID had already submitted its proposals for the development of two oil fields in West Karoun to NIOC.
Future Presence in Iraq
Mohsen Mousavi, a senior manager at the Oil Industries Engineering and Construction Company (OIEC), said efforts were under way to find Iranian and foreign partners to finance projects.
“New financing proposals have been submitted to NIOC,” he said.
Mousavi said the best option for financing and implementing petroleum industry projects was partnership between Iranian E&P firms. “In that case, they can negotiate with foreign parties rather than negotiating with the government.”
He said OIEC had positive background in its cooperation with international firms, mainly Russian Gazprom Neft and Zarubezhneft.
He said that OIEC had fully developed Phase 1 of the Azar oil field, adding: “Currently talks are under way with NIOC for the second phase development of this field. Meantime, we have presented NIOC with an MDP for the Changouleh field and we are waiting for the company’s response.”
Mousavi said OIEC had started developing the Mansouri oil field in cooperation with NISOC, following an agreement signed last February.
He said that 14 exploration blocks would be tendered out this year, adding that OIEC hoped to run for five of them.
“We recently entered into talks with a Chinese company for presence in the Iraqi oil fields. I hope the talks would come to fruition,” said Mousavi.
He referred to OIEC’s 30 years of experience in operating technical projects and providing services, saying: “OIEC is among Iranian companies that had already worked alongside Shell and BP in Azerbaijan’s Shah Deniz field.”
He added that OIEC was eying projects in Iraq, Oman and Qatar.
Mousavi said: “We are very hopeful to reach conclusion in the talks for the implementation of a refining and a drilling project. According to our planning, we will soon start work in an oil refinery in one of neighboring countries.”
TENCO Submits 6 MDPs
Negin Afagh Kish Energy Development Co (TENCO) has signed five memorandums with NIOC to conduct feasibility studies on six Iranian oil and gas fields in the past two years, CEO of TENCO Omid Asakareh said.
Asakareh said the fields included Azadegan, Ab Teimour, Mansouri, Shadegan, Farzad A and Farzad B.
“Meantime, we embarked on talks with NIOC Exploration Directorate for work in the new exploration blocks,” he said.
Asakareh said talks had been held with 34 foreign companies listed by NIOC in the past one year for the establishment of joint ventures.
He said that E&P companies are required to get seriously involved in operating oil and gas fields. “To that effect we managed to sign an MOU for the preservation of recovery from the Reshadat and Ahvaz fields. After approval by the NIOC Board of Directors, we will start work.”
He also said that an MOU had been signed for working on the Toudaj exploration block in Fars Province in southern Iran. He said an agreement would be soon finalized for that purpose.