NIOC to Consider Several Firms for Field Study

“So (Russian) Tatneft Company should present the best offer in the shortest possible time, while taking the ongoing atmosphere into consideration,” Manouchehri told a ceremony, where the NIOC and Tatneft signed an MoU for Dehloran field development study.

He said under the buy-back contracts, once the field reached production state, the investor could obtain his core and side wage and bonus in a period of investment, while under new contracts, mere production is not important and the contract party should guarantee collective production of the field on a long-term basis.

He said the new contracts envisions the time limit for implementation and exploitation as 20 years. “Volume of production was not so much important in the buy-back model, while the new contracts any reward will depend on volume of production in the years after conclusion of the contract.”

“In other words, the curve of production envisioned for the purpose is of high importance; hence, the contract parties will under the new model of contract of the Iranian oil industry have to move on the production curve; the goal whose materialization needs careful and expertise preliminary studies.”

The official said the new model of Iranian oil contracts have been devised based on the buy-back contracts and the distinction is that certain aspects are developed with an aim to meet interests of the either party.

Manouchehri said Enhanced Oil Recovery (EOR) is one of the main goals of the NIOC in the new oil contracts. “The model of contracts, especially those concerning the fields that are getting operational, is a suitable model.”

The official said foreign companies should concentrate all their technological potential and technical know-how in the fields, being subject to the contract, on Iran. “The contract will not only guarantee long-term interests of Iran but will also be profitable for the group of foreign companies that have high potential and technical know-how  and use the capability in Iranian oil and gas fields.”

Regarding the long-record of Tatneft activity in the EOR, Manouchehri asked the Russian company to hold a workshop in Iran on the issue and outline their experience. “Tatneft should open up its office in Iran as soon as possible.”

Tatneft and NIOC signed a MoU on Saturday for field development study on Dehloran oil field, which is 22 kms southwest of Dehloran in Ilam Province, containing about five billion barrels of in-situ oil reserves.