Iran council approves deal with Premier and Bow Valley
A top economic council in Iran has approved a $ 200 mm deal with Canada's Bow Valley Energy and Britain's Premier Oil
to develop an offshore oil field.
Iran's Supreme Economic Council approved the deal to develop the offshore Balal field beginning of February at a
meeting chaired by Iran's President Mohammad Khatami.
A diplomat said the project was worth $ 200 mm and was to be completed over a period of two years.
The Balal field in the Gulf had reserves of 80 mm barrels of oil, and that the project aimed to establish production
of 35,000 - 40,000 bpd. Other estimates have put reserves at 105 mm barrels.
The two firms said they had formed a joint venture to develop the field in August. Premier joined Bow Valley after an
Indonesian oil company pulled out.
