Norsk Hydro Starts Iranian Seismic Program
Norsk Hydro has contracted CGG to begin a seismic survey in the 3,500 square kilometer Anaran block in southwestern Iran. The first test well is expected to be spud by the end of the year. The Anaran block is considered as a high potential area as it is located in the prolific Zagros belt, where most of Iran's commercial oil and gas is located.
According to the agreement signed back in April of 2000, Norsk Hydro is committed to spudding five wells, three exploration and two appraisal, and carrying out at least 780 kilometers of two-dimensional seismic studies by 2004. The contract has a one year option.
At the end of that period, if Hydro and NIOC agree that the eventual find is commercial, Hydro may enter negotiations for a buy-back deal to exploit the oil. NIOC may, however, choose another company to apply for a buy-back project.