Iran, OMV Continue Talks on Band-e Karkheh Oil Field Development

TEHRAN (Dow Jones Newswires), September 10, 2008

Iran will continue to hold talks with Austria's OMV AG on the development of the local Band-e Karkheh oil field for a limited time, the oil ministry's official Shana news Web site reported Tuesday.

"Even though the time period (for talks) with Austria's OMV for the development of the Band-e Karkheh oil field have come to an end, negotiations with this company will continue for a limited time," said Naji Sadooni, managing director of Iran's Oil Engineering and Development Co., or OEDC, according to Shana.

The official said although discussions between the two sides were supposed to be finalized in early July, OMV was given an additional limited time period to present the master development plan for the field, Shana reports.

Sadooni said preliminary operations for the project have started in order to prevent delays, Shana reports.

According to Sadooni, the field's production capacity will be 20,000 barrels a day of crude, Shana adds. 

 Copyright (c) 2008 Dow Jones & Company, Inc.