Iran signs development of Esfandiar oilfield

Sep 19, 2015 12:00 AM

The Iranian Offshore Oil Company (IOOC) and a Norwegian-Austrian company have signed a preliminary agreement for the development of the offshore Efandiar field, IOOC Managing Director Saeed Hafezi says.

“The initial confidentiality agreement has been signed, the MDP (master development plan) prepared and sufficient data exchanged. We are only waiting for the new Iranian contract model to be finalized and introduced in order to begin work,” he said.

Esfandiar is an extension of the Lulu field shared with Saudi Arabia. Hafezi said the field is among his company’s top priorities for development.

Iran’s oil recovery from Efandiar has yet to begin about 50 years after the field was discovered with more than 500 million barrels of in-situ reserves.

In May 2002, Iran’s Ministry of Petroleum signed a $585 million buyback deal with PetroIran to boost oil recovery from the Forouzan field and produce 4,000 barrels per day from Esfandiar.

The project was halted after IOOC proposed to raise production from Esfandiar to 10,000 bpd and subsequently to 20,000 bpd.

IOOC then awarded the project to Malaysia’s Petronas, with Qatar's National Bank due to finance its 400 million euro development but the agreement was cancelled after QNB refused to make the investment.

Hafezi said six or seven offshore fields have been selected for presentation to foreign investors, some of which will be unveiled at the London conference due in December.

He said preliminary negotiations have begun with France’s Total and Italy’s Eni as well as Italian oil and gas industry contractor Saipem but “we are not ready to submit data about the fields to them unless we sign an MoU or confidentiality agreement”.

An agreement, however, has been signed with a Ukrainian company to revive an oil well in the Doroud field on the Kharg island. Hafezi said he expected the well to yield 30,000 bpd when production resumes.

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