Iran may authorize buyback deal for Farzad B

National Iranian Offshore Company (NIOC) expects to bring in a foreign oil company to develop the Farzad B field under a buyback contract.

Offshore staff

TEHRAN -- National Iranian Offshore C. (NIOC) expects to bring in a foreign oil company to develop the Farzad B field under a buyback contract.

Farzad B is a gas and oil field in the Farsi block in the Persian Gulf.

According to NIOC MD Mahmood Zirakchianzade, speaking to Iranian news agency Shana, the foreign operator has obtained necessary government licenses to start operations. The development could cost $5 billion, he added.

Negotiations are under way with NIOC to conclude terms for the buyback contract. This would be structured in such a way that the exact investment figure would be determined after issuing of tenders.

10/27/2010

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