Iran signs three major oil contracts

Some 160,000 bpd of crude oil will be added to the country's petroleum production following the signing of three key contracts to develop oil fields of Bangestan and Rag-Sefid and the oil layer of the world's largest gas field, South Pars.
The managing director of National Iranian Oil Company (NIOC) was quoted as saying that some $ 3.3 bn will be invested in these development projects. Mehdi Mirmoezi added all the joint oil fields in the Persian Gulf are now being developed.

The official further noted that the three buy-back projects would be awarded to the Iranian companies of PetroIran and Qeshm Energy and Oil Industries Development.
"Following the failure of the tenders for projects to develop Bangestan oil field and the oil layer of the South Pars, the Council of Economy allowed the NIOC to award the projects on buy-back basis to Iranian firms," he said, adding that the NIOC is in charge of financing the projects.

Mirmoezi further said that the NIOC is planning to operate internationally through subsidiaries, namely Niko, Petropars and PetroIran companies.
"Overseas activities of such companies would help strengthen the financial backbone of the NIOC and consequently the government," he said, adding that the NIOC is planning to take advice from international consultation firms to improve productivity in recovery projects.