Japan Drilling Wins South Pars Contract

National Iranian Oil Company and Japan Drilling Co. Ltd. have signed a drilling contract for South Pars gas field. Japan Drilling Co. Ltd. was the winner of the five-year contact in a tender offering. The contract could be extended for another five years by mutual agreement of both parties.

The value of contract is approximately 182 million dollars and the contract binds Japan Drilling to enter into partnership with an Iranian company whose headquarters will have to be registered in the Persian Gulf free trade zone island of Kish. The call for registration in Kish is part of the Iranian Oil Ministry's drive to have international oil companies maintain representative offices in its part of the Persian Gulf. The company would also use the jackups, Sagadril 1 and Sagadril 2, which are currently work in the South Pars gas field.