Deals worth €1.5b inked to boost oil output

August 17, 2020 - 14:8

TEHRAN – Two subsidiaries of the National Iranian Oil Company (NIOC) signed deals worth €1.527 billion with domestic companies on Monday, aiming to add 185,000 barrels per day to the country’s oil production capacity.

The deals were signed between the Iranian Offshore Oil Company (IOOC) and the National Iranian South Oil Company (NISOC), as employers, and 14 Iranian companies for the maintenance of the production level and increasing recovery factor of several oil fields, Shana reported.

NISOC is the employer for 11 of the mentioned contracts, which will be implemented in the five provinces of Khuzestan, Fars, Kohgiluyeh-Boyer Ahmad, Bushehr, and Hormozgan, while the other two were signed by IOOC.

Accordingly, two contracts for the development of Zilaei as well as Chalingar and Garangan projects were signed with Global Petrotech Kish Company; Ramin project was awarded to Persia Oil and Gas Industry Development Company, while Mansourabad project was handed over to Petro Iran Development Company, the Siahmakan project to Pasargad Energy Development Company, Maroun 2, 5 and 6 projects to Petrotenco, Maroun 1 and 4 projects to North Drilling Company (Sina Energy Gostar Holding), Maroun 3 project to the Iranian Offshore Engineering and Construction Company (IOECC).

Balaroud project was signed jointly with the National Iranian Drilling Company (NIDC) and Jahanpars Engineering and Construction Company, Ahvaz 1, and 4 projects jointly with Qeshm Oil and Energy Industries and Maroun Karan.

The contract for Resalat Project of IOOC was signed jointly with the Iranian Offshore Engineering and Construction Company and the Intelligent Solutions Inc., and the Forouzan project was also signed jointly with Petropars and Mobin Sazeh Gostar.

Since the reimposition of the U.S. sanctions, the Iranian Oil Ministry has been following a new strategy to encourage the country’s private sector to have a stronger role in the development of the country’s oil industry.

In this regard, NIOC has awarded several exploration and development projects to capable domestic companies in the past two years.

EF/MA

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