Contract to develop Azar oilfield to be signed soon
IRNA - Islamic Republic News Agency
Tehran, Aug 22, IRNA -- Contract to develop Azar and Changouleh oilfields will be signed with Iranian oil executives, Hamid Karimi, the project manager said on Wednesday.
Karimi said a rls 252 billion contract has been signed with the West Region Power Company, affiliated to Iran Power Generation Transmission and Distribution Management Company (TAVANIR), to supply electricity to the project.
He said the project has had 75 percent physical progress thus far and will be finalized by the next three months.
Iran's Oil Ministry has signed a USD 1.9 billion contract with a consortium of domestic companies for the development of the Azar oil field.
The contract was signed on Tuesday by Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qalebani and head of Iran's Oil Industrial Engineering and Construction Company (OIEC) Rokneddin Javadi.
The Iranian consortium consists of OIEC and the Oil Pension Fund Investment Company (OPIC).
Iran's Oil Minister Rostam Qasemi said at the meeting that the ministry pursues the policy of increasing oil and gas production.
Qasemi added that early production from Azar field will reach 30,000 barrels per day in next the 36 months and will finally hit 65,000 barrels per day.
Before assigning the project to the domestic consortium, Iran was negotiating the development of Azar oil field with Russia's Gazprom Company.
However, it was announced on Sunday that Gazprom company had been dropped from the project due to its failure to meet its commitments and would be replaced by a consortium of Iranian companies.
The Azar oil field spans an overall area of 482 square kilometers in southeast of Mehran town in the western Iranian province of Ilam.
Iran is the world's fourth-largest oil producer and sits on the world's second largest natural gas reserves.
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Islamic Republic News Agency/IRNA NewsCode: 1025715
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