Iranian Upstream Project Talks

Iran

Published on Tuesday, 25 October 2016 Back to articles

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NIOC deputy director Gholamreza Manouchehri said on 19 October that the company is currently in talks with 16 international energy firms over the development of 50 oil and gas projects that were earlier announced as priorities. South Azadegan oil field in southwestern Iran will be the first deal, he said, and probably needs US$10 billion to add 600,000 b/d of output.

Manouchehri emphasised that all the development projects are feasible even with oil at US$40 per barrel.

In similar remarks, NIOC managing director Ali Kardor said the first international tender will be held for South Azadegan, stressing that development requires advanced technologies and that any local company that wishes to get involved should partner with a creditable foreign company.

Earlier, Iranian media reported that the country had received the first wave of proposals by major international companies, including Total, Lukoil, Shell, Eni, OMV, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), and Pertamina.

Several of the key projects the companies have targeted are the same ones they had previously been involved in or for which they had been negotiating with Iran prior to the intensification of sanctions.

The most lucrative project up for the grabs may be South Azadegan, for which Total has presented its proposal. Next in line could be Yadavaran, for which both Shell and Sinopec have presented proposals. Total and Shell had been negotiating with the NIOC in early 2000s over the development of South Azadegan and Yadavaran but the talks were inconclusive.

Shell has also bid for the re-development of Soroush oil field – located in the Persian Gulf – which it developed in early 2000s.

Total, Eni, and Hyundai have presented proposals for unspecified phases of South Pars gas field. Total was already involved in the development of phases 2 and 3, while Eni was involved in phases 4 and 5.

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