the projects. For five of these projects, agreements have been signed and “€150 million plus IRR 4,000 billion” credit has been allocated. “With these projects we will for the first time step into Makran, Jazmourian and Mianeh,” he said. Hendi said: “Last year, after drilling one exploration well work started in east of Karoun. We started drilling Arman well in a fully intact area.” He said: “We are currently drilling wells near Shadegan Lagoon and we expect an imminent exploration horizon.” “Also in Azadegan Plain, we are operating southward and we will have several joint onshore and offshore projects. The agreement on one of them has been signed and we expect the tender bid for the remaining to have a winner. We expect to witness massive structural traps there,” he added. Hendi also touched on new exploration in the Kopet-Dag area, saying: “This area is very far from Iran’s southern energy hub, but it has always been of significance to us. Based on the Petroleum Minister’s instruction we are looking for gas.” He said that seismic testing operations had started in the current calendar year. Hendi said in coming years, at least three exploration wells would be drilled in Kopet-Dag area. “Kopet-Dag is a sedimentary area, extending from east of Gorgan to Sarakhs. It is divided into eastern, western
and central sections,” he said. “Our exploration will be in eastern Kopet-Dag. We have also started exploration in other areas like Kalat Naderi, Dargaz and Sarakhs and we will have seismic testing in Zarrineh Kuh, too.” He said: “Gonbadli and Khangiran are among oil fields that have already passed half of their life and are faced with pressure falloff. That is why gas exploration in this region is significant.” Exploration Potential Asked if NIOC had started operations in other areas without any history of exploration projects, Hendi said: “Last [calendar] year, we zoned the country in terms of exploration potential. It is our forecast that the biggest potential lies in the south and southwest. But it does not imply that we would not be looking for new explorations in other areas of the country. In the following phases we will become active in northeast and northwest where there is lower potential.” “Of course earlier we had exploration operations with higher risk in Kashan, Garmsar, Kohguiluyeh Boyer Ahmad and some areas of Qom and Kurdestan,” said Hendi. He said that exploration operations began in northern Dezful, whose results will be soon announced. Hendi said
NIOC’s exploration commitments for the 6th five-year plan would be covered with the Dezful exploration and “allows us to focus on higher-risk drilling for some time.” He said: “For the sedimentary areas all across the country, 10-year roadmap was drawn up. We are moving ahead based on the priorities and we have major plans for all these areas like Makran or Moghan or Kopet-Dagh.” Shale Oil/Gas Reserves Hendi said access to shale oil and gas reserves was among plans ahead, adding: “Last year, we announced existence of massive shale gas reserves in Ilam and Kermanshah and the minister appreciated it, but development of these fields is not currently prioritized by NIOC and we are looking for the private sector’s potential.” He said that shale oil had been discovered in the Qali Kuh area in Lorestan, whose complementary studies were under way. He added that the project was among NIOC priorities. Hendi said: “Should legal problems in the awarding of shale reservoirs to the private sector be resolved, such oil and gas which is of high quality could be cost-effective for the private sector.” He said that exploration and production of shale oil and gas in the world was economical, “but in the current mix of NIOC projects, the priority would be to produce oil at $10 a barrel and refrain from $20 a barrel.” Hendi said sovereignty over oil and gas is in the hands of state and the law does not authorize the private sector to be involved in the oil and gas sector. He added: “Studies about legal aspects are under way and we are trying to apply the Mine Law to this issue. Petroleum Ministry is conducting consultations in this regard.” E&P Companies in Exploration Blocks Hendi also touched on the joint research projects conducted with universities, saying: “Our effort has been to refrain from individual programs from the first year. We implemented a roadmap which provided us with the major chapters required for research.” He said the next step was long-term joint research project with five universities – Ferdowsi University, Shahroud
University of Technology, Shahid Chamran University, Shahid Beheshti University and Khawrazmi University. Hendi said: “The first phase of these agreements was done and approximately all these universities did their part of the plan and useful studies were conducted, creating a network of domestic and foreign experts. The report on the conclusion of these five agreements was submitted to the minister.” He added: “In the roadmap designed for each of these contracts, a five to nine-year period has been envisaged for the development of technology and even commercialization.” Hendi said talks had been held with the Office of Vice President for Strategic Affairs and CEO of NIOC, and the Office of Vice President agreed to provide the sum to be paid by NIOC to knowledge-based companies in the five universities. On the issue of oil companies’ involvement in exploration, he said: “In light of restrictions in attracting
foreign investment we decided to employ E&P companies in exploration blocks.” Hendi said TENCO (Negin Afagh Kish Energy Development Company) was the first company to sign an MOU in this regard. He added that TENCO was provided with the Toudaj block data. He said that the Exploration Directorate would provide its viewpoint soon about the possible signing of agreement and start of operations. Hendi said Petroiran Development Company (PEDCO) and Petropars had teamed up for several field development projects “and we are in the stage of signing contracts”. He added that Iranian Offshore Engineering and Construction Company (IOEC) and Pars Petro Zagros had also teamed up to look for offshore blocks. “Currently, we have shared data with them,” he said. Hendi said a total of five Iranian companies were engaged in exploration blocks. He added: “Of course we have not yet issued appeal to Iranian E&P companies. We are waiting for the endorsement of all contractual parameters by the minister and then we will forward them to all 19 Iranian