Tehran, Sept 18, IRNA-A contract for exploration and development of an oil block in Khorramabad was signed Sunday between the National Iranian Oil Company (NIOC) and a Norwegian energy company.
During the signing ceremony, National Iranian Oil Company Executive Director Gholamhossein Nozari said the current contract is the forth signed so far between Iran and a foreign oil company for exploration and development of the country's oil and gas reserves, adding that eight other contracts have also been concluded for exploration activities.
Noting that Iran ranks second worldwide in terms of gas and oil reserves, he said that NIOC has decided to expand its exploration activities through cooperation with international oil and gas companies in order to have access to more energy resources.
He also noted that despite numerous research conducted all over the world to explore energy alternatives, oil and gas are still considered the cheapest and most economical sources of energy in the world for the foreseeable future.
NIOC's Exploration and Development Department head Mahmood Mohaddeth said the Norwegian company, operating locally by the name Hydrozagros, won the Khorramabad bidding among eight competitors and intends to invest USD 49.5 million in the project, which amount could be raised to USD 117.5 million in future phases.
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