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Iran, Malaysia to sign Golshan, Ferdowsi downstream deal in 6 months

Tehran, Dec 31, IRNA - Malaysia's SKS Ventures managing director Sunday said the contract on the downstream sector of Golshan and Ferdowsi fields and their LNG systems would be signed within the next six months.

Shahul Hameed Mohammed Ismail told PIN gas produced by the two fields would be expected to be transferred in 2013.

He said Iran, as the world's second-largest holder of gas reserves, is a good state for investment and his company was trying to boost Iran- Malaysia relations in oil industry.

"National Iranian Oil Company (NIOC) is among the giant companies of the world and we try to be a good partner for the NIOC," added the SKS Ventures head.

He said the Malaysian company was working with Iran not only in upstream industry, but also in downstream sector, referring to its cooperation with the National Iranian Oil Refining and Distribution Company (NIORDC) in building gas condensates refinery of Shiraz, southern Iran.

The contract on the development of Golshan and Ferdowsi gas fields was inked in the presence of Iranian Oil Minister Gholam-Hossein Nozari and Malaysian Ambassador Monshe Afdzaruddin here last Wednesday.

The deal was signed by Pars Oil and Gas Company (POGC) Managing Director Ali Vakili, who represented National Iranian Oil Company ( NIOC), and Syed Mokhtar al-Bukhari, the head of Malaysia's Al-Bukhari Foundation.

According to the contract, SKS Ventures, a subsidiary of Al-Bukhari Foundation, will develop the two gas fields in southern Iran.The two sides had already signed a $16 billion memorandum of understanding on the development of two gas fields and the establishment of LNG production units.

The agreement was signed between the state-owned NIOC and SKS.

Nozari said the new method of signing buyback contracts and participation of both sides was welcomed by foreign companies. " Development of the upstream section of the two gas fields will be implemented by Malaysia's SKS Ventures based on a buyback contract," he said.

"Another long-term 25-year contract is expected to be inked on the downstream section of the fields," he added.

Golshan field holds 42 to 56 trillion cubic feet (tcf) of in-place gas. Golshan is located 180 km southeast of Bushehr city, southern Hormuzgan Province, 65 km (40 miles) from Iran's shore. Ferdowsi field located 190 km southeast of Bushehr and 85 km from the Iranian coast, has estimated in situ gas reserves of 9 to 13 10 tcf.

Iran's estimated gas reserves, the world's second-largest after Russia, amount to 971.150 tcf (more than 26 tcm). The country is in urgent need of developing its gas fields both to cover domestic consumption and fulfill its gas export plans for Europe and Eastern Asia.

... Payvand News - 12/31/07 ... --

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