Tehran, March 14, IRNA -- Iran's Balal offshore field near southern Lavan Island in the Persian Gulf will yield up to 40,000 barrels of crude oil per day once the project for development of the field is complete.
Expressing this view, official in charge of the project for development of Balal oil field, Farzad Bazargan told reporters here on Sunday that the project is now 98 percent complete and the remaining two percent will be for removal of certain defects.
Bazargan said Elf, Bow Valley and Agip are contractors in the project, which will be fully completed by June.
The Iranian official said Balal field's oil, which is of high quality and competitive with Brent crude, is transferred to Lavan through a 14-inch pipeline, where it is mixed with oil in Salman field for exports.
He said the field has several layers, whose Arab layer alone is estimated to hold about 117 million barrels of oil.
Each barrel of oil obtained from Balal field is worth about 25 dollars, putting the total value of oil existing in the field at dlrs three billion, said the official.
Bazargan said that oil production from two wells in Balal field started from February 2003, with an output of about 25,000 barrels a day. About 13 million barrels have thus far been drilled from the field, earning the country about dlrs 300 million.
Project for the development of the field has thus far cost about dlrs 316 million, that has been paid off over the past one year, he added.
The contract -- buy-back in nature -- was signed with the state-owned National Iranian Company (NIOC) in April 1999. The NIOC has a 31.5 percent stake in the project, which created 120 direct and 100 indirect job opportunities once operational.
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