Page 12 - FSUOGM Week 29 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

NIOC and Gazprom sign

MoU for $40bn deal

RUSSIA THE National Iranian Oil Co. (NIOC) and Rus- have at least 57 trillion cubic feet (1.6 trillion
sia’s Gazprom this week signed a memorandum cubic metres) of gas in place, around 70% of
The companies sitting of understanding (MoU) covering investment which is located in its upper reservoir.
atop the world’s two worth around $40bn. At the time of the 2018 deal, 17 wells have
top gas reserve totals During a virtual ceremony on July 19, a deal been drilled and 26 offshore platforms installed
have teamed up to was signed by NIOC CEO Mohsen Khojaste- in the field but production has yet to commence.
collaborate on projects hmehr and Gazprom deputy chairman Vitaly According to NIOC, 46 operating wells are
throughout the oil and Markelov that will include field development, required for the field to reach the 3.6bn cubic feet
gas supply chain. product swaps and the completion of midstream (102mn cubic metres) per day output that it is
projects, including LNG facilities and pipelines. anticipated to produce for at least 25 years. Some
Khojastehmehr described the deal as one of production will continue for 35 years, though,
the biggest foreign direct investment (FDI) deals based on a recovery rate of 60%.
in the history of Iran’s oil industry and said: “The Meanwhile, Kish was discovered in 2006.
National Iranian Oil Company does not ignore It lies under Iran’s Kish Island and is estimated
any investment opportunity.” to hold 66 tcf (1.9 tcm) of gas and at least 1bn
Meanwhile, Markelov said: “In accordance barrels of condensate. Of this, around 50 tcf (1.4
with the order of Vladimir Putin, the President of tcm) and 331 million barrels, respectively, is
Russia, the senior Gazprom executives attended deemed recoverable.
Tehran last week and we had constructive talks.” Development of the field was kick-started
The Ministry of Petroleum’s (MoP) Shana in late March 2007 with a $2.2bn allocation of
news agency reported that the MoU covers the funds from the NIOC for the first phase, which
development of the Kish and North Pars gas will be conducted by Iran’s own Petroleum Engi-
fields, pressure enhancement at the supergiant neering and Development Co. (PEDEC).
South Pars gas field and the development of six This was bolstered in 2010 with a further
undisclosed oilfields. The parties will also engage $10bn loan agreement with an Iranian consor-
on gas and product swaps, while Gazprom will tium headed by Bank Mellat. However, owing to
work to complete LNG projects abandoned inadequate equipment and expertise, it was not
when sanctions were imposed on Iran in 2012 until April 2014 that tangible parameters for first
and construct gas export pipelines. The deal also phase development (which has now begun) were
covers scientific and technological co-operation. agreed.
In this form, the deal appears to cover sev- The development plan for the field involves
eral of the key areas of focus outlined in a 2018 the construction of the four projected gas refin-
agreement between the same parties. At that eries in the Garzeh region in the southern Hor-
time, Moscow was reported to have signed deals mozgan Province, rather than on the island
covering 17 fields, while the Russian firms had itself – which is a key tourist destination – and
public deals in place for studies at another 10. will be linked to the 14 onshore wells via a 19-km
Kish and North Pars are seen as the key fields pipeline.
for supplying the incomplete Iran LNG facility
at Tombak Port. Pars pressure
Later the same day, Khojastehmehr said that
Gas push Gazprom’s assistance would help bring the final
North Pars was discovered in 1963 and is located development phase of South Pars on-stream
120 km south-east of Bushehr Province at a during the winter, to boost supplies when
water depth of 3,500 metres. It is estimated to demand is at its peak.

P12 www. NEWSBASE .com Week 29 20•July•2022