Bow Valley and Elf to develop Iran's offshore Balal oil field
A consortium made up of Canada's Bow Valley Energy and Elf Petroleum Iran has agreed to develop Iran's offshore Balal
oil field.
The cost of the project is estimated at $ 300 mm, and the first oil from Balal _ some 40,000 bpd _ is expected in
2001.
The U.S. State Department said that it is "deeply disappointed" about the decision to develop Balal.
"The U.S. remains strongly opposed to investment in Iran's petroleum sector," State Department spokesman James P.
Rubin said. "We have repeatedly urged the governments of France and Canada at the most senior levels to discourage
this investment."
Rubin said the administration will review the facts to determine whether U.S. sanctions could be applied against the
two companies.
Balal is 60 miles south-west of Lavan Island in the Persian Gulf. Reserves there are estimated at 100 mm barrels of "good quality oil," France's Elf Aquitaine said in a statement.
Elf Petroleum Iran is a subsidiary of Paris-based Elf Aquitaine.
The consortiumis to be reimbursed and paid in crude oil in the six-year contract with Iran's national oil company.
