TotalFinaElf and partners start production of Persian Gulf field

The Balal Field, a $ 310 mm development by TotalFinaElf and partners in the Persian Gulf offshore Iran, has gone on production. Abolgassem Hassani, managing director of Iran's Continental Shelf Oil Company, said the 390-mm barrel oilfield began production at a rate of 20,000 bpd but will soon be ramped up to 40,000 bpd after completion of development operations.
The field, located 100 km south of Lavan Island, was developed under a three-year buy-back contract that provides for the recovery of investments and remuneration through a portion of the field's production. Hassani said production is presently from two completed wells, but added that the remaining eight wells in the field development plan will become operational by March 2004.

Over the 15-year lifecycle of the field, he said, about 30 % of the reserves are expected to be produced, or about 117 mm barrel. He added that the field incorporates two pay zones, one at 3,207 ft and the other at 6,070 ft, with a very good quality crude in both zones said to be superior to Brent.
Hassani said the method of repayment to the contractor was to be either in cash or a 60 % share in production, but because of the rise in the price of oil, should repayment be made in the form of production sharing, the 60 % figure would drop to 30 %. He noted that a 100 km pipeline is to carry Balal's oil production to Lavan Island for storage and eventual export.

Hassani said that now that the Balal Field, which was given priority for development, is now onstream, that development studies are currently underway for the re-development of the nearby Resalat and Reshadat Fields.
TotalFinaElf holds a 47 % stake in the project and is its operator, while ENI holds 38 % interest and Canada's Bow Valley holds 15 % interest.