Iran to Sign $1.5B Oil Deal with Eni for Darkhovin Devt

Iran is to sign a $1.5 billion deal with Italian energy firm Eni for the development of the third phase of Iran's Darkhovin oil field.
Eni has submitted a feasibility study of Darkhovin's third phase to Iran's Oil Engineering and Development Company (OEDC), a spokesman for the Iranian company said Wednesday.

"Eni is currently active in the first two phases of Darkhovin and has voiced interest in developing the oil field's third phase with an investment of $1.5 billion," he said.

Eni, Italy's biggest oil and gas company, signed a $550 million deal with the National Iranian Oil Company (NIOC) in 2001 to develop Darkhovin oil field which lies in southwest Iran near the Iraqi border.

It brought the first phase on line in 2005 and is now active in the second phase.

It is expected that oil production at the oil field would ultimately reach 260,000 barrels per day (bpd) once the third phase of the field becomes operational.

BBC Monitoring. Copyright BBC.