TEHRAN — The National Iranian Oil Company (NIOC) has declared the development of Iran’s western Mehr Block economically viable, an NIOC official said here on Saturday.

Talking with the Petroenergy Information Network (PIN), Hossein Roshandel added that contractors in charge of exploration at the Mehr Block have struck oil after the drilling of first well in 3,600 meters depth. “Therefore, the NIOC has announced the block commercial.”

Director at the NIOC for exploration explained that negotiations over the development of the block will be started subsequent to choosing a contractor. Then the development of the block will be launched eight months after starting date of talks, he added.

“If no consensus is reached with contractors, the development of the block will be put on international tender,” he stated.

Roshandel explained that Austria’s OMV, Sipetrol (an international private company), and Spain’s Repsol are carrying out exploration at the Mehr Block. They will start the drilling of the second well within a month, he added.