Iran offers contracts to develop Caspian Sea oil fields
Washington, 25 August (IranVNC)—The Iranian government is for the first time considering offering production sharing contracts to develop its Caspian Sea oilfields, in an effort to attract foreign investors, a report from the National Iranian Oil Company [NIOC] said today, according to PressTV.
By: IranVNC
Published: Monday, August 25, 2008
10:16GMT—6:16AM/EST
IRAN – OIL – CASPIAN SEA – ENERGY
Washington, 25 August (IranVNC)—The Iranian government is for the first time considering offering production sharing contracts to develop its Caspian Sea oilfields, in an effort to attract foreign investors, a report from the National Iranian Oil Company [NIOC] said today, according to PressTV.
The Islamic Republic is in talks with Chinese and Indian oil companies regarding the development of the Caspian Sea, announced Hojatollah Ghanimifard, NIOC’s deputy director and investment cheif, AFP reports.
The NIOC has been working to entice more foreign investors to Iran by offering such contracts that would entitle a developer to a share of the production, resulting in improved profits.
However some international developers have been concerned about the significant risk in investing in the fluctuating energy market.
Iranian officials also recognize the increased production costs of developing the Caspian Sea because of the water’s depth.
“We think this region might be the exception to the rule,” Ghanimifard said. “Since it is deep water, it looks like the production cost per barrel would be much more than in other regions, say compared with the south, or the Persian Gulf,” PressTV reports.
High construction costs and delays have dissuaded major oil companies from investing in, according to Ghanimifard , Iran’s strongest interest, which is the development of the South Pars gas field.
Sources: Agence France-Presse, PressTV
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