Tuesday 13 November 2018

Total and Iran officials signing the deal

Iran to tender 14 oil blocks in three months

TEHRAN, July 11, 2017

Iran's state National Iranian Oil Company (NIOC) is planning to tender 14 oil and gas blocks for exploration in the next two to three months, a senior official was quoted as saying.

Iran hopes to attract oil majors in the first round of oil and gas exploration tenders since the easing of economic sanctions, a Reuters report said.

NIOC's deputy director for exploration blocks, Rahim Nematollahi, said on the sidelines of an energy industry conference in Istanbul that BP, Austria's OMV, Gazprom, Lukoil as well as Italy's Edison and Malaysia's Petronas have expressed interest in new exploration blocks, the Reuters report said.

Sitting on some of the world's biggest energy reserves, Iran has already been working on deals to develop existing fields such as South Pars, South Azadegan, Yadavaran, West Karoon, Mansuri and Abe-Teymur, Reuters reported.

Last week, France's Total became the first major to sign a post-sanctions development deal with Iran. Russia's Lukoil and Denmark's Maersk are also potential investors.

Most of the new exploration blocks are in the Zagros, Koppet Dagh and the Persian Gulf region and would require minimum exploration expenditure of between €14 million ($16 million) and €80 million.

The biggest exploration expenses are expected for blocks Parsa and Bamdad in the Persian Gulf, amounting to €80 million and €75 million respectively.

Meanwhile, Iran's ambassador to Paris said Total, by signing a contract with NIOC, has opened the doors to all other energy majors of the world to join projects in Iran.

Ali Ahani, quoted by Shana news agency, said the deal that was signed between Iran, France and China has a prospective approach to investment in Iran's energy sector.

He further said the deal broke taboos of working and investing in Iran among international companies, adding the deal shed the fears of many European and non-European companies about investing in Iran.

Tags: Iran | Total | Oil blocks |

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