Tehran, March 5, IRNA -- Chairman of Petropars Company Akbar Torkan said here on Wednesday that another eight billion dollars will be spent on expansion of South Pars project during the next Iranian year (to start March 21).
Talking to IRNA, he said that eight phases of South Pars gas field will be put to tender by Iran's National Oil Company in the next Iranian year.
There will be no limit for the number of domestic or foreign companies willing to participate in the tender, he said, adding that the investments will be made through buy-back agreements.
Direct investments in each phase of South Pars field will be estimated to be dlrs one billion, he said ad added that agreements for expansion of the new phases will be inked by March 20, 2004.
Agreements for expansion of 10 phases of South Pars gas field, the largest off-shore gas field in the world, have already been signed.
Executor of the project for development of Azadegan oil field Naji Saduni told IRNA here on Wednesday that Iran and Japan have been engaged in talks for one and half a years on a dlrs 2.8 billion buy-back deal for development of the field but no agreement has been reached yet due to what he called "unworkable proposals of the Japanese party."
Saduni had in late September said the contract for development of Azadegan oil field was expected to be signed with Japan by March 2003 per a preferential negotiation right Tehran had offered to its Japanese partner in the course of President Mohammad Khatami's visit to Tokyo in November 2000 in response to Japan's defiance of US protest to freeze the second part of a three billion US dollars low interest loan for Iran's development projects.
Japan would have been mandated under the deal, which was to be presumably signed by March 2003, provide Iran with the last trance of the loan, worth dlrs one billion.
Azadegan oil field covers an area measuring 1,500 square kilometers and is located 80 kilometers west of Ahvaz (Khuzestan province) in Dasht-e Azadegan.
Preliminary studies on the field revealed 35 to 45 billion barrels of oil reserves in the field, of which about five billion barrels of oil is estimated to be exploited.
The project for development of Azadegan oil field is the biggest onshore project implemented in Iranian upstream crude oil industry following the victory of the 1979 Islamic Revolution.
Some 120,000 barrels of oil per day is expected to be produced for seven years once the first phase of the project is operational one year after the conclusion of the deal.
From the seventh year of operation, the first phase of the project is expected to yield 350,000 barrels of crude oil a day, according to Saduni.
The project for development of Azadegan oil field is expected to cost dlrs 2.8 billion.
The huge oil field is said to hold at least five to six billion barrels of recoverable crude oil and could pave the way for Japan's largest investment in Iran since the Islamic Revolution in 1979.
The Islamic Republic which accounts for 11 percent of Japan's oil imports is the third largest oil supplier of that country.
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