Iran in talks with Kuwait over joint field development

Jan. 9, 2012
National Iranian Offshore Oil Co. (NIOOC) is pushing for a joint development of a gas field in the Persian Gulf with Kuwait.

Offshore staff

TEHRAN, Iran – National Iranian Offshore Oil Co. (NIOOC) is pushing for a joint development of a gas field in the Persian Gulf with Kuwait.

Managing Director Mahmood Zirakchianzade told Iranian news service Shana the company had proposed appointing a joint operator for the Arash field, which overlaps Iranian and Kuwaiti waters, during a visit by Kuwait’s oil minister to Tehran.

A common operator would reduce development costs, he said, pointing out that such an arrangement is now common in shared offshore blocks in the North Sea.

He added that Iran was willing to export the field’s gas to Kuwait based on prices prevalent in the region.

Elsewhere in the Persian Gulf, Shana reports that early production from the South Pars gas-condensate field Phase 12 should start later this year.

Pars Oil and Gas Co. Managing Director Mousa Souri said pipelay and drilling were respectively 92% and 65% complete.

He added that all 12 development wells have been drilled from Phase 12’s first platform using two rigs. Drilling operations are 70% complete at the third platform, and are just about to start at the second platform.

Produced gas from the first platform’s wells will come onstream first. Eventually Phase 12 will deliver 78 MMcm/d of gas for injection into Iran’s sixth gas trunkline, along with 110,000 b/d of condensate and 750 t of sulfur. Souri estimated the overall Phase 12 investment cost at $7.8 billion.

01/09/2012

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