Norsk Hydro Signs Exploration Agreement with NIOC
Hydro has signed an exploration and development agreement with the National Iranian Oil Company (NIOC). The agreement covers the Khorramabad block in Lurestan province in south-western Iran.
The block, which is 7,424 square kilometers in area, is located at a height of 1,200 meters roughly 500 kilometers from Teheran. Hydro submitted the winning bid in an international tender held in May 2005.
The initial scope of the agreement is for a four-year exploration and trial period. The program comprises 600 kilometer, 2D seismic and the drilling of three wells at a cost of USD 50 million during/over the exploration period.
Work is now at the planning stage, and it is expected that the collection of 2D seismic will start in 2006. If exploration proves to be successful, the period of the agreement will be 25 years.
If no commercial finds are made during the initial exploration period, the agreement will be terminated.
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