Iran News ...


4/22/06

Total criticizes buy-back scheme in Iran's oil & gas industries

Tehran, April 21, IRNA-A Total envoy to Iran said on Friday that buy-back is not the right scheme for transfer of technology and know-how.

"It is not the proper way to have the transfer of technology and know-how. In buy-back you develop fields and when it is finished you say goodbye to everything. You don't know how it is produced. And it is exactly the problem," head of the Total pavilion at the 11th Iran Oil Show, that is underway in Tehran from April 20-23, said in an interview with IRNA on the sidelines of the exhibition.

The Total official said the buy-back scheme is not adapted to oil industry in Iran, whose oil production industry will step into its centenary in two years.

"To me, Iran is a very ancient oil producer. Just look at Masjid-Soleyman; In two years from now it will be the centenary of the field... 100 years passing from oil production from the field. It started to produce in 1908; So in two years it will be 100 years old.

So, it is an old field. No doubt on that; it is an old man and needs proper care if you want it to continue living."

He said Iran needs to build a very strong relation between the oil operations and related studies.

Somewhere in the interview, the Total figure said that his company will have no choice but abandoning activity in Iran in case of sanctions by the international parties.

"If the international fora say you cannot work in Iran there is no choice. But it is not the case today. We continue to work and invest in Iran."

He also ruled out certain French press rumors that Total had received bribes from Iran and said they were just rumors by certain jealous individuals and parties that do not like to see successful development projects are handled in Iran by Total.

Giving a chronology of Total activities in Iran, the official said Total has been in Iran for exactly 56 years and after a nationalization movement it was the first oil company to come back to the country.

He said that 11 years ago, in 1995, Total was the pioneer of the buy-back scheme, concluding and enforcing four such contracts with the first three ones related to oil projects in Sirri A & E, Balal and SP phases two and three, while the fourth one related to a gas development project in Dorud.

"There are billions of dollars behind us, and billions of dollars more ahead of us," he boasted.

He said the project for development of SP phase 11, in which Total is involved with 80 percent share, is almost ready, waiting answers from contractors.

Statoil urges acceptable contracts for oil, gas partnership

Tehran, April 21, IRNA-An Statoil envoy said on Friday that the Company is interested in long-term presence in Iran's South Pars development and oil recovery industry but "all these need acceptable contracts."

The head of Statoil pavilion at the 11th Iran Oil Show told IRNA that he believed reforms are needed to be made in Iran's oil and gas contracts, especially buy-back, to encourage foreign partnership.

He said foreign companies should be involved in the projects for longer period of time, for example for more than 20 years rather than five to eight years.

He added that some incentives are needed to be offered to the foreign partners.

"Some incentives are needed; if you do good job you should be awarded and if you do bad job there should be no more cooperation," said the Statoil representative.

Somewhere in the interview, he said he hoped no sanctions will be imposed against Iran but if so, his company would decide whether to have any cooperation with the country.

... Payvand News - 4/22/06 ... --



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