Total Gives $1bn Impetus To Iran’s Upstream Opening

Iran’s plans to open up its oil and gas sector to IOCs are edging forward. Finalization of the contract with Total & CNPC to develop South Pars Phase 11 looks to be close, but the country’s first upstream tender is being pushed back.

Iran aims to sign contracts worth around $15bn with IOCs during the current Iranian year (ending March 2018) according to NIOC managing director Ali Kardor. The Phase 11 heads of agreement (HoA) signed in November was provisionally worth $4.8bn, implying that $15bn would require around 3-4 deals.

The process has undergone frequent delays. In August 2016 NIOC hoped that two or three contracts would have been signed by the end of the last Iranian year, which ended in March ( MEES, 2 September 2016 ).

Along with the Phase 11 contract, Mr Kardor says he expects a contract to be signed for the development of the entire Azadegan field, and the oil layer of the South Pars field. Azadegan is to be the first field Iran puts to tender. All previous deals upstream have been via bilateral agreements. Azadegan was originally developed in two separate parts – production is currently 50,000 b/d at South Azadegan and 70,000 b/d at North Azadegan – but will now be auctioned as one field. (CONTINUED - 1536 WORDS)


table Oil And Gas Fields To Be Offered Under The Iran Petroleum Contract
table IOCs Qualified for Iran Tender