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Iran to inaugurate Balal offshore oil field

Tehran, May 12, IRNA -- First Vice President Mohammad-Reza Aref will on Sunday officially inaugurate Balal offshore oil field about 100 kilometers southwest of Lavan Island in the Persian Gulf and near Iran's maritime border with Qatar.

Balal oil field is expected to run with the capacity to yield up to 40,000 barrels of crude per day once it goes into operation.

National Iranian Oil Company (NIOC), French Elf, Canadian Bow Valley and Italian Agip are the contractors in the buy-back based project, contracts for implementation of which were signed in April 1999.

The NIOC has a 31.5 percent stake in the project, which will create 120 direct and 100 indirect job opportunities once it becomes operational.

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 blended 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.

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 obtained 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.

... Payvand News - 5/12/04 ... --

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