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Iran is considering pulling the lucrative Yadavaran oil field development from Chinese state energy giant Sinopec by year-end, once Phase-1 of the project is completed. Full operatorship would then be transferred to Petroleum Development and Engineering Company (PEDEC), a subsidiary of state giant NIOC, which today jointly operates the field with Sinopec.
This follows significant delays at the field – one of several key projects Iran hopes could help boost its domestic oil producing capacity over the coming years. Iran is targeting a highly ambitious 5.7mn b/d by 2017, up from 3.7-3.8mn b/d today (MEES, 18 April).
Sinopec was awarded a contract for the three phase development of the Yadavaran field in 2007, with plateau production envisaged at around 300,000 b/d. PEDEC last December said it hoped to boost output to 50,000 b/d by 1Q14. But output remains stuck at around 25,000 b/d, a fact that has long made Iranian oil ministry officials uneasy. (CONTINUED - 746 WORDS)