Essar Oil Eyeing Azadegan Rights

Essar Oil is reportedly in talks to acquire development rights to the Azadeagan oil field in Iran. Executives from Essar Oil met with officials from Iran earlier this year to discuss a deal for developing the field. According to Iranian law, foreign companies are not permitted to own equity stakes in oil and gas field.

If the deal is finalized, Essar would partner with NIOC and take a 49% interest. NIOC would hold the remaining 51%. More discussions on the proposed development deal would take place either later this month or early next month.

Iran had been in talks with Japan's Inpex on developing the field, however, those talks fell through at the end of last year.

Essar says if they are awarded development rights they would get a share of the oil and gas production which would then be used for a planned refinery and steel plant in Iran. Essar is also considering a bid on several of the oil and gas blocks that Iran put up for auction last month.