Iran makes new oil find in south

Jun 20, 2004 02:00 AM

Iran's Minister of Oil Bijan Namdar Zanganeh said that a new oil field has been discovered in the south of the country.
"We have explored a new oil field and we will make its specifications public soon," Zanganeh told. Zanganeh also said that the oil producers were supplying crude 3 mm barrels more than the market demand.
"The market faces no shortage in supply. Political tensions in the Middle East and notably Iraq and gasoline production technical problems in the United States are the main reason behind oil price hikes," he said.

Zanganeh said that eleven members of OPEC are supposed to supply more than 29 mm crude barrels this month.
"Iran abides by its OPEC quota," he said.
OPEC has called for non-members to boost output to help lower oil prices and make up for lost exports from Iraq. Pipeline attacks in Iraq threaten to take about 1.5 mm bpd of oil off global markets. OPEC's members -- which account for 40 % of the world's oil supply -- have signalled they'll be boosting production. Russia, a major producer outside OPEC, has already said it can't increase output anytime soon.

Zanganeh also said that the country was in the process of launching an oil exchange.
"At moment, there is no such bourse in the region and we can remove obstacles," he said.
The minister also said that India's flagship overseas firm ONGC Videsh Ltd. (OVL) is likely to get a 20 % stake in Kusk and Hosseinieh oil fields in Iran on nomination basis.

Iran is to offer 20 % share (equal to 60,000 bpd or 3 mm tpy of crude oil) in Kusk and Hosseinieh fields in exchange for India buying 5 mm tons of LNG from Tehran.
"We have held talks with Indian officials but we have not yet reach any agreement," Zanganeh said.
OVL would be accommodated after Tehran selects operators of the two fields through a bidding round by September-end. OVL would have to participate in the bidding process.

Initially, Iran was keen on getting OVL on board the giant South Azadegan oil field but operator Japan has yet to approve any participation of another party in the field.
"National Iranian Oil Co could also consider offering 25 % from its share in the field (about 60,000 bpd) to OVL," they said. As per indications, the Japanese prefer participation from one of the major oil multinationals in the project.

As regards finalization of term sheet for LNG imports, an Iranian delegation will visit India for further discussions. The term sheet is being finalized by Indian Oil Corp and GAIL (India) with National Iranian Gas Export Co.
Till now, there had not been much progress in allocation of a suitable oil field by Iranians to India on nomination in lieu of LNG that the latter will purchase from Iran under a deal signed early last year.

Source: Tehran Times
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