Two Seismic Testing Agreements Signed
The National Iranian Oil Company Exploration Directorate has signed two seismic testing agreements with two Iranian companies. The agreements, including one 2D and one 3D seismic testing, are aimed at identifying new exploration potential in Iran.
Saleh Hendi, NIOC exploration chief, said all sedimentary basins had to be decided upon. He said that due to discoveries of previous years, the Directorate had fully met its exploration targets.
The 2D Basht seismic testing agreement was signed between Hendi and Ali-Reza Behbahaninia, chairman of Oil Exploration Operation Company (OEOC) affiliated with the Oil Industries Engineering and Construction Company (OIEC). The 3D Paniz seismic testing agreement has been signed between Hendi and Omid Asakareh, CEO of TENCO (Negin Afagh Kish Energy Development Company).
Largest 3D Seismic Project
The Paniz project would be the largest 3D offshore-onshore seismic project in Iran, covering 2,000 square kilometers of land in the cities of Shadegan, Abadan, Mahshahr and Darquain. Estimated to last 32 months, the project is valued at IRR 3,000 billion.
In the data gathering phase of this project, a vast segment of Abadan Plain’s sedimentary basin would undergo exploration operation and the 3D seismic testing of Abadan Plain would be largely completed.
Meanwhile, the connection between East Karoun’s structures and adjoining structures would be examined. Stratigraphic hydrocarbon traps would be also identified.
The 2D seismic testing, worth IRR 1,400 billion, would cover the three provinces of Kohguiluyeh and Boyer Ahmad, Fars and Khuzestan. OIEC would operate the project over 28 months.
The project is aimed at identifying new exploration potential. In the data gathering phase, the southern Dezful sedimentary basin would be studied. That would allow the determination of the precise geometry of buildings and the depth of access to exploration objectives.
No Submission to Sanctions
Addressing the signing ceremony, Hendi highlighted US sanctions imposed on Iran’s petroleum industry and said: “In spite of all problems faced with by the petroleum industry, this sector is dynamic and industrious. The signing of these agreements shows that we have not bowed under the pressure from sanctions.”
He said Iran did not welcome sanctions and isolation from the entire world, adding: “But we will not raise our hands in show of submission.”
Hendi highlighted complications in seismic testing projects like Paniz, saying: “Foreign companies were supposed to operate such projects, but under the present circumstances [sanctions], the Exploration Directorate will operate such projects in partnership with Iranian companies.”
He also touched on the studies conducted on exploration blocks, saying: “We had already signed a memorandum of cooperation with an Iranian company and we are now about to sign an agreement.”
He said that for the first time exploration studies were being jointly conducted with an Iranian company, which proved Iran’s self-reliance in exploration.
Increased Exploration
Hendi said NIOC Exploration Directorate had managed to reach its liquid hydrocarbon (oil, liquefied gas and condensate) and gas exploration targets at 130% and 170%, respectively. He said it was due to increased exploration over recent years.
He said that the Exploration Directorate was officially obligated to decide upon prospective measures to be taken in all sedimentary basins in the country.
Hendi said: “Tender bids are planned to be launched for 14 seismic, gravimetry and magnometry agreements this [calendar] year. Seven agreements have been finalized and we hope that the remaining contracts would be finalized by the end of next calendar year.”
He said the implementation of agreements needed IRR 22,000 billion, adding: “These agreements will be implemented in various parts of Iran and they are scattered sufficiently. In some areas like Jask, Jazmourian, Bostanabad and Mianeh, which had remained intact, we will be prospecting.”
Contractors, Operating Arm of NIOC
Gholam-Reza Manouchehri, CEO of OIEC, said contractors would be the operating arm of NIOC.
“Under the present circumstances, further cooperation between clients and contractors is expected,” he said.
Manouchehri said major oil and gas potentialities in Iran had become practical, adding: “Exploration activities are just the beginning of this road. Therefore, focusing on the development of exploration activities is a right decision under the present circumstances in Iran.”
Manouchehri said OEOC had already conducted joint investment with an Iranian service company, adding they were considering tie-up.
He also expressed hope that Saba Drilling Company would be able to meet NIOC needs.
OIEC is among companies active both in upstream and downstream sectors, and was involved in the development of the South Pars gas field. It has recently signed agreements to cooperate with Loule Gostar Esfarayen and Mashin Sazi Arak in the upstream and petrochemical sectors.
Manouchehri said agreements worth IRR 20,000 billion had been signed with the private sector, adding that another IRR 20,000 billion was on the agenda.
Asakareh said the Paniz project would be implemented in Khuzestan Province, including 1,900 square kilometers of 3D seismic testing and 400 square kilometers of 2D seismic testing.
According to Asakareh, the Paniz project was planned for 32 months, 22 months of which would be for implementation and the rest for data processing.
He referred to an MOU signed between TENCO and National Iranian South Oil Company (NISOC) for developing the Shadegan field, saying: “Since development of this field is a TENCO priority, I hope to sign the agreement for developing this field with NISOC. However, due to restrictions in attracting foreign financing, we plan to implement the projects on our own by relying on domestic technical and technological knowhow.”
Asakareh said TENCO was among dozens of companies recognized by Iran’s Petroleum Ministry as E&P companies.
He added: “Given the significance of exploration, in this company, in addition to the development section, a division has been set up to take care of exploration projects and seismic testing affairs.”