Page 4 - MEOG Week 29 2022

MEOG COMMENTARY MEOG

NIOC and Gazprom sign

MoU for $40bn deal

The companies sitting atop the world’s two top gas reserve totals have
teamed up to collaborate on projects throughout the oil and gas supply chain.

IRAN THE National Iranian Oil Co. (NIOC) and Rus- on gas and product swaps, while Gazprom will
sia’s Gazprom this week signed a memorandum work to complete LNG projects abandoned
of understanding (MoU) covering investment when sanctions were imposed on Iran in 2012
WHAT: worth around $40bn. and construct gas export pipelines.
The companies signed a During a virtual ceremony on July 19, a deal The deal also covers scientific and technolog-
wide-ranging deal that was signed by NIOC CEO Mohsen Khojaste- ical co-operation.
is set to bear its first hmehr and Gazprom deputy chairman Vitaly In this form, the deal appears to cover several
fruit through expediting Markelov that will include field development, of the key areas of focus outlined in a 2018 agree-
operations at South Pars. product swaps and the completion of midstream ment between the same parties.
projects, including LNG facilities and pipelines. At that time, Moscow was reported to have
WHY: Khojastehmehr described the deal as one of signed deals covering 17 fields, while the Rus-
Both companies the biggest foreign direct investment (FDI) deals sian firms had public deals in place for studies at
have limited options in the history of Iran’s oil industry and said: “The another 10. Kish and North Pars are seen as the
for international National Iranian Oil Company does not ignore key fields for supplying the incomplete Iran LNG
collaboration on account any investment opportunity.” facility at Tombak Port.
of geopolitical factors. Meanwhile, Markelov said: “In accordance
with the order of Vladimir Putin, the President of Gas push
WHAT NEXT: Russia, the senior Gazprom executives attended North Pars was discovered in 1963 and is located
The realisation of Iran’s Tehran last week and we had constructive talks.” 120 km south-east of Bushehr Province at a
long-stalled LNG efforts The Ministry of Petroleum’s (MoP) Shana water depth of 3,500 metres. It is estimated to
is included in the deal, news agency reported that the MoU covers the have at least 57 trillion cubic feet (1.6 trillion
though feeding such development of the Kish and North Pars gas cubic metres) of gas in place, around 70% of
projects will depend fields, pressure enhancement at the supergiant which is located in its upper reservoir.
on the development of South Pars gas field and the development of six At the time of the 2018 deal, 17 wells have
untapped fields. undisclosed oilfields. The parties will also engage been drilled and 26 offshore platforms installed

P4 www. NEWSBASE .com Week 29 20•July•2022