Toyo and NIOC to co-finance Salman field rehabilitation studies

National Iranian Oil Co. has signed a memorandum of understanding with Toyo and Petropars for rehabilitation of facilities and upgrading of gas production at the Salman oil field in the Persian Gulf, according to news service Shana.

Offshore staff

TEHRAN, IranNational Iranian Oil Co. (NIOC) has signed a memorandum of understanding (MoU) with Japanese engineering group Toyo and Petropars for rehabilitation of facilities and upgrading of gas production at the Salman oil field in the Persian Gulf, according to news service Shana.

During a signing ceremony yesterday, Gholamreza Manouchehri, deputy for development and engineering at NIOC, highlighted Toyo’s history in working in Iran, including the South Pars 6, 7, and 8 projects.

Iran is keen, he added, to co-operate with other Asian companies in its oil and gas projects, adding that the MoU will allow Toyo to boost its presence in Iran’s oil industry and upstream projects.

In recent years Iranian Offshore Oil Co.’s production has fallen andSalman is one instance of offshore facilities in need of rehabilitation and renovation.

The field is 142 km (88 mi) south of Lavan Island on the median line with the UAE, and was redeveloped in 2006 by PetroIran Co. It initially came onstream in 1968 and at peak in the 1970s produced 195,000 b/d.

NIOC, Toyo, and Petropars will commission studies, and if the MoU leads to a deal, it will be performed under an engineering, procurement, and financing project, with finance provided by Toyo.

In a separate Shana report, Minister of Petroleum Bijan Zangeneh, addressing the Iranian Parliament, said his country will incur $5 billion in losses for every year that development of the South Pars phases in the Persian Gulf is delayed.

He said Iran has so far suffered a $22-billion loss as a result of postponing development of various phases, resulting in growing unemployment in Iran.

However, NIOC’s recent agreement to co-developSouth Pars Phase 11 with Total and CNPC was a start, and Zangeneh added that the country’s new oil contracts model imposes no limits on co-operation between foreign and Iranian companies, with the partnerships able to fully develop projects won in tenders.

He also said incentives had been offered to Iranian companies, such as developing projects at costs up to 10% higher than their foreign rivals in tenders.

07/18/2017

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