NIOC Signs Contract Extensions for Oil & Gas Fields

National Iranian Oil Company intends to sign contracts ranging between 5-7 billion dollars on expansion of oil and gas fields in the current Iranian year (started March 21). Managing Director Seyed Mehdi Mir-Mo'ezzi said that a number of contracts are already signed and that direct negotiations and tender for another contract are currently underway.

Referring to NIOC's priority on the expansion of oil and gas fields, he noted that the goal set by NIOC is to boost this year's oil production capacity in the joint offshore and onshore fields by one million barrels. He said that the fields consist of two offshore and joint onshore fields in southwestern Iran.

"Development of the second phase consists of Forouzan offshore oil field, South Pars offshore oilfields, and Azadegan joint offshore oil field bordering Iraq," he added. He pointed to an eight-phase contract for the production of 200 million cubic meters of gas at South Pars field as one of the programs on NIOC agenda for the current year.

Mir-Mo'ezzi hoped that the contract for gathering 17 million cubic meters of gas to be produced daily will also be signed in the current year.

"Negotiations with Japanese enterprises aiming at a contract on the development of Azadegan oil field are currently underway and good progress has been achieved so far. "The negotiations are due to be finalized before June 2003 and the chance of the Japanese enterprises winning the contract is 50 percent,"

he added. Referring to the special follow-up on Bangestan oilfield, he hoped that the winner of the bid will be declared within the next two to three months.

"Implementation of the first phase of South Pars gas field, exploration of Tabnak gas field in southern Fars Province, finalization of Balal oil field development project, Soroush and Norouz projects, boosting the primary production capacity of Darkhoein field and completion of Abouzar oilfield are among NIOC projects in the current year," he added.

He noted that once the above projects are commissioned, daily oil and natural gas production are to be boosted by 250,000 barrels and 65 million cubic meters respectively.