Page 8 - AsianOil Week 20 2021

AsianOil SOUTH ASIA AsianOil

Indian developers lose out in Iran

PROJECTS & THE Iranian government has decided to pro- Farzad-B is estimated to hold around 23
COMPANIES ceed with the development of the shallow-water trillion cubic feet (651.36bn cubic metres) of
Farzad-B natural gas and condensate field with- gas in place, with 60% of that considered to be
out India’s participation. recoverable. The field also contains around 5,000
ONGC Videsh Ltd (OVL), the overseas arm barrels of condensate for every billion cubic feet
of Oil and Natural Gas Corp. (ONGC), discov- (28.32mn cubic metres) of gas.
ered the field in 2008 in partnership with Indian “The deal was signed on Monday, May 17, in
Oil Corp. (IOC) and Oil India Ltd (OIL). How- a ceremony held in the presence of Iranian Min-
ever, after more than a decade of failed negoti- ister of Petroleum Bijan Zangeneh in Tehran,”
ations between the Indian consortium and the Shana reported.
government, Tehran opted to award the develop- OVL had operated the field, which is
ment contract to state-owned National Iranian located within the 3,500-square km Farsi
Oil Co.’s (NIOC) subsidiary Petropars. block, with a 40% interest, while IOC owned
“The [NIOC] has signed a contract worth 40% and OIL controlled the remaining 20%.
$1.78bn with Petropars Group for the develop- The block lies in water depths of 20-90 metres
ment of Farzad B gas field in the Persian Gulf,” in the Persian Gulf.
Indian newswire PTI quoted the Iranian Oil After the exploration phase of the Farsi con-
Ministry’s official news service Shana as report- tract expired in 2009, the Iranian government’s
ing on May 17. negotiations with the Indian developers floun-
The contract has set a production target of dered, with difficult terms and international
28mn cubic metres per day of sour gas over five sanctions repeatedly cited as major stumbling
years, with output to be sent to the South Pars gas blocks. The Indian consortium has reportedly
field’s onshore gas plants. invested around $400mn in the block.™

SOUTHEAST ASIA

Indonesian upstream expands

domestic content level

PERFORMANCE INDONESIA’S upstream watchdog SKK Migas goods and services as of April reached $1.14bn,
has revealed that the domestic content level in then a [domestic content level] of 58% means
the country’s oil and gas projects during the first investment in the national support industry
four months of the year exceeded the govern- amounted to $658.9mn,” Suryadi added.
ment’s target. The official noted that SKK Migas was
The regulator said that domestic content lev- spearheading work programmes to expand the
els reached 58% of project costs by the end of domestic content level of upstream projects.
April, compared with the government’s full-year SKK Migas has invited the head of the Indone-
target of 57%. sian Petroleum Association’s (IPA) supply chain
SKK Migas said that in order to help boost management (SCM) committee as well as four
the level of domestic goods and services used by domestic companies to be part of the process.
the upstream it would focus on bringing together Fajar Benua Indopack has been invited to
developers and local providers. supply gaskets, expansion joints and flexible
“We held a virtual event that aims to provide hose products, Asia Mega Pasifik will provide
opportunities for domestic companies to inform high-density polyethylene (HDPE) geomem-
[contractors] of their capabilities. For [contrac- brane products, Harmand Intimarin Indonesia
tors], this activity will increase their knowledge will offer drilling services and onshore rigs, while
of domestic companies’ ability to support their Bumi Cahaya Unggul will cover pumping units.
operations,” local financial daily Neraca quoted Pertamina Hulu Energi (PHE), an upstream
SKK Migas’ head of supply chain management, unit of state-owned Pertamina, wants domestic
Erwin Suryadi, as saying on May 17. manufacturers to improve both their technical
The official added that by improving local competencies as well as quality and production
companies’ ability to provide goods and services capacity, according to PHE acting vice-president
to oil and gas contractors, the upstream sector of SCM Irfan Zaenuri. Neraca cited the official as
could help drive domestic economic growth. saying PHE has used 111 domestic manufactur-
“If the value of the procurement of upstream ers in its projects last year.™

P8 www. NEWSBASE .com Week 20 20•May•2021