TEHRAN, Sept. 10 (Mehr News Agency) - Iranian Central Oil Fields Company will hold an international tender next week for the development of 14 oil and gas fields, ICOFC manager of engineering and construction department said here on Wednesday.
"It is estimated that the tender will attract about $5 billion for the development of these 14 oil and gas fields," Mahmud Borzu explained, PIN reported.
"The National Iranian Oil Company's board of directors has issued permission to hold the tenders," he said, adding that the fields are expected to produce 120,000 barrels of oil and 67 million cubic meters of gas daily.
"The financial resources for the development of these 14 oil and gas fields will be funded through finance or buy-back method," ICOFC's Managing Director, Ali-Reza Zeighami explained, emphasizing that the financial resources outside NIOC are preferred.
"Negotiations will continue in the near future," PIN quoted Seifollah Jashnsaz as saying.
"Interior Minister Ali Kordan, acting as the representative of the president, participated in the meeting," he explained.
The main sticking point is the formula for the price of the gas.
The UAE-based marketing firm Crescent National Gas Corp. signed a deal with the National Iranian Oil Co. in 2001 to import natural gas from Iran's Salman field through a pipeline jointly built by Iran and Crescent. The 22-inch, 144-kilometer pipeline transfers the oil produced from the field to Lavan Island to be exported there. Based on the signed MOU, Iran was supposed to export daily 600 million cubic feet of gas to the UAE for 25 years starting in 2005.
According to IRNA, the contract came into the limelight and triggered criticism from the State Audit Court, which says Iran would lose around $21 billion over the period of the export contract because of the low price. It demanded that the contract be revised or some of its provisions revoked.
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