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National Iranian Oil Company and China's Sinopec sign Garmsar oil, gas contract

TEHRAN, June 21 (Mehr News Agency) - The National Iranian Oil Company (NIOC) and China's Sinopec here on Tuesday night signed a contract on exploration and development of oil and gas fields in Gamrsar, central of Iran.

Golam-Hossein Nozari, the NIOC managing director, said, "In addition to exploration operations, the NIOC and Sinopec are cooperating on LNG development and export projects and setup of new refineries and petrochemical complexes."

He expressed hope the Garmsar contract - NIOC's second contract with Sinopec and third with China and - will expand bilateral cooperation in the downstream sector.

According to the contract, Sinopec is to conduct geological surveys, carry out 2D seismographic measurements in a 700 square kilometer area, and drill two exploration wells.

For complementary operations, the Chinese company is duty-bound to record 2D seismographic measurements in an area of 500 square kilometers and drill three appraisal exploration wells.

The contractor is committed to invest at least $19.61 million and carry out the exploration operations within four years.

According to the estimate, the complementary operations will cost $38.95 million.

The investment will soar to maximum $58.56 million, provided hydrocarbons are found and complementary exploration and drilling more wells are needed.

All expenses of the operations are borne by the contractor.

The Garmsar region, where the operations are held, has a 13,800 sq. km area.

Iran and China has already signed two exploration and development contracts on Zavareh in Kashan and on Kuhdasht in southwestern province of Lorestan.

Leo Jen Tung, Chinese ambassador to Tehran, also stressed the need for expansion of Iran-China ties in all fields.

China's oil imports from Iran will increase since the country is the leading oil consumer in the world, he predicted.

... Payvand News - 6/21/06 ... --

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