‘POGDC deal no catalyst for foreign awards’
Iran has rejected speculations that its first award of a major project to a local enterprise through the country’s new format of oil agreements was meant to facilitate the ground for future awards to international corporations.
Ali Kardor, the managing director of the National Iranian Oil Company (NIOC), was quoted by the media as saying that things had been expedited to seal the first contract through the new format of oil sector agreements with a local simply because “negotiating with Iranian companies is easier”.
Kardor emphasized that more contracts are expected to be signed with local companies over new oil projects in the future, Shana reported.
The official was talking to reporters after a ceremony to sign a contract for the development of Yaran oil field between the NIOC and Persia Oil and Gas Development Company (POGDC) – what was carried out through the new format of the country’s oil sector agreements.
The POGDC also won two other deals from the NIOC to improve the recovery rate at two other southern fields, namely Maroun and Koupal.
The Iranian company is expected to invest $2.2 billion in the projects.
Iran’s new format of oil contracts replaced buyback deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But under the new contracts, the NIOC will set up joint ventures for crude oil and gas production with contractors that will be paid with a share of the output.
Under the new contracts, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.
Kardor further emphasized that the POGDC has so far had negotiations with certain European companies – and specifically the Russian firms – over Yaran. However, he did not name them.
The POGDC was in a list of eight Iranian contractors that the country’s Ministry of Petroleum has authorized to team up with international corporations to take up projects within the new format of oil sector contracts.
Others are Petropars, Petro Iran Development Company (PEDCO), Oil Industries Engineering and Construction Company (OIEC), Dana Energy, MAPNA Group, Industrial Projects Management of Iran (IPMI), and Khatam-ul-Anbia Construction Headquarters (KACH).
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