TEHRAN, Dec. 2 (Mehr News Agency) - Iran and China are at the last stages of negotiations over the project to develop Yadavaran Oilfield. A final deal is expected to be signed in the near future, Oil Minister Kazem Vaziri-Hamaneh said on Saturday.
"We have agreed on main points with China's Sinopec, and we have signed a memorandum of understanding (MOU). Therefore, we expected to finalize the deal soon," the official told the Iranian Students News Agency (ISNA).
Located in the southwestern province of Khuzestan, Yadavaran Oilfield is one of the largest untapped fields in the world.
On the presence of Italian Eni in the development of Azadegan Oilfield in southern Iran, the minister said that talks are still ongoing.
As for the project to develop North Pars gas field, southern Iran, Hamaneh noted that the proposals offered by foreign companies are yet to be assessed.
The senior official also said, "Talks with Kuwait over the joint development of Arash gas field are continuing." The offshore gas field is shared by the two countries.
Commenting on probable OPEC cut, Hamaneh elaborated that the possibility is there should a decline in prices suggest so. The Organization of Petroleum Exporting Countries has officially announced it will cut production by 1.2 million barrels, but nothing can be predicted at the present time, he added.
OPEC is to decide on a cut at its next meeting on December 14 in Nigeria.
The operations, approved by Majlis, will be conducted in the form of buyback by drilling three exploration wells at the blocks. The bid calls for $475m investment topped by $36m required for 3D surveys.
The contractor is to receive 20% of the anticipated expenses in down payment and will be entitled to no more 50% of the revenues. The contract may be terminated immediately and no payment is awarded if it is deemed commercially nonviable, the report read.
Other stipulations call for six-month progress report to Management and Planning Organization (MPO) and replacement of another block of the choice for contractor, should any accident impede the work at Block 6.
The length of the contract is set at no more than a year since the time of issuance.
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