Oil giants likely to join hands in Iranian industry

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NIOC deputy head has reported on likely cooperation among two Chinese firms, France’s Total and UK’s Shell for development of West Karun joint oilfields.

Deputy Head of NIOC for Development and Engineering Affairs Gholamreza Manouchehri said the main priority for the Nation Iranian Oil Company (NIOC) was to boost recovery factor in Yadavaran and Azadegan oil fields.
The official expounded that the recovery factor in the two joint fields is intended to climb from the current 5.5 or 6 to approximately 20 per cent.
On development of the two fields, he emphasized that proposals which provide the highest recovery rate will receive top priority recalling “several MoUs have been so far inked with international companies like Total of France, Britain’s Royal Dutch Shell, Japan’s Inpex Corporation as well as Malaysia’s PETRONAS among the others.
In response to a question on likelihood of eliminating Chinese firms from the developmental project, Manouchehri explained that NIOC had held relevant talks with Sinopec and CNPC of China indicating that removal of Chinese from the projects was not on the agenda.
He pointed to the willingness of Chinese companies to collaborate with oil giants like Shell and Total emphasizing that Iran would welcome such cooperation between Chinese and European firms for expansion of oil fields.
NIOC deputy head, while reiterating that Iran seeks to elevate recovery factor in its oil and gas fields, voiced Iran’s full support for any relevant collaboration between Asian and European companies in partnership with an Iranian partner.
Gholamreza Manouchehri estimated that the first tender to develop South Azadegan oil field will be invited in the first quarter of 2017.
So far, giant companies like France’s Total, Royal Dutch Shell, Russia’s Russneft as well as Inpex Corporation of Japan have inked MoUs or confidentiality agreements with National Iranian Oil Company (NIOC) to carry out the study phase of South Azadegan developmental project.
These agreements have been inked while Iranian officials had voiced satisfaction towards performances of Sinopec and CNPC of China in the first developmental phase of the project.
Executive manager of the Development Project of Yadavaran oilfield Hadi Nazarpour announced that Sinopec Company, by development of Yadavaran oilfield, has recovered about 70 million barrels of crude oil in Iran and the daily output in the Iranian field currently stands at 115 thousand barrels.
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