Balal offshore oilfield in Iran goes into operation
The Balal field offshore Iran, has gone onstream following $310 million development operations led by the French TotalFinaElf. The 390-million bbl oilfield began production from two completed wells at a rate of 20,000 barrels of oil per day (bpd). Pumping is expected to climb to 40,000 bpd, as the field’s remaining eight wells come online, by March 2004, Abolgassem Hassani, managing director of Iran's Continental Shelf Oil Company, said.
The field is located offshore Iran, 100 kilometer south of the Lavan Island and 70 meters deep into the Persian Gulf waters. A pipeline is planned to transport Balal's output to Lavan Island for storage, ahead of export.
The Balal oil field is developed under a three-year buy-back contract, which provides for the recovery of investments and remuneration through a portion of the field's production. The deal was signed in 1999 with an international joint venture, held 46.75 percent by French operator TotalFinaElf, 38.25 percent by Italy’s ENI and 15 percent by Bow Valley of Canada. — (menareport.com)
© 2003 Mena Report (www.menareport.com)