MPs Positive with Contracts Just Concluded

The MPs have in separate interviews with Shana said they believe the gesture will help using domestic capacity for development of the oil industry.

Member of the Parliament Energy Committee Hassan Bahramnia said the first contract, signed within framework of the new model of oil contracts and by Ministry of Petroleum and the Executive Headquarters of late Imam Khomeini Decree, falls in line with the Economy of Resilience and in accordance with demands of people and MPs.

Bahramnia, emphasizing that Ministry of Petroleum had by signing the first such deal with a domestic body taken the first step towards confidence building, said domestic potential that reserve good standing globally should be used.

Member of the Parliament Energy Committee Behrouz Nemati said Ministry of Petroleum and government will sign the contract with any organ that will be suitable for launching huge work.

Nemati said using domestic companies for the purpose does not mean the capacity of major oil companies will be ignored.

Another member of the Parliament Energy Committee Jalal Mirzaie said enhanced recovery of the oil field is one of the goals of the new model of oil contracts.

the National Iranian Oil Company (NIOC) and the Iranian Persia Oil & Gas Industry Development Co. (POGIDC) signed the Heads of Agreements (HOA) just recently for development of Yaran joint field.

The POGIDC is one of the eight Iranian companies qualified as an E&P company by the Ministry of Petroleum. 

Under the contract, Persia Oil & Gas will develop four oil fields and reservoirs in southwest Iran, working to increase their output from 185,000 barrels per day now to at least 260,000 bpd, said Ali Kardor, National Iranian Oil Company managing director. He pegged the project to be worth $2.2 billion.

The NIOC had earlier invited qualified Iranian E&P companies to lead the small- and mideum-sized fields and use foreign companies if needed.

Development of Yaran joint field, consisting North and South Yaran, is on agenda of the NIOC development projects. The fields are two of the joint fields west of Karoon. The northern part is developed by the POGIDC on the buy-back contract and it will daily yield 30,000 bpd oil soon.