Iranian oil firm inks $850-million deal to develop an Iran-UAE offshore field
IRNA the official Iranian news agency reported that NIOC the National Iranian PetroIran Co. to develop an 85,000-barrels-per-day Salman field an offshore oil field that is shared with Abu Dhabi of the United Arab Emirates.
According to IRNA, NIOC will increase the output capacity of the field wich Iran owns 75 percent, to 130,000 bpd from its current capacity of 85,000 bpd, of the oil and gas field, the field has already produced 1.3 billion barrels of oil. Gas production will reach 14 million cubic meters a day plus 9,000 b/d of gaseous liquids.
The field is situated 142 kilometers south of the Lavan Islands in the Persian Gulf, next to Abu Dhabi's Abu al-Khosh field. The field has about 4 billion barrels of oil and 185 billion cubic meters of gas.
Dow Jones News Wires reported Tuesday, that Iran's deputy oil minister and deputy director at the NIOC, Mehdi Mirmoezzi, was quoted as saying in the Persian daily Hamshahri that total oil production would generate $4.7 billion of revenue - assuming a price of $20/bbl - and gas output would generate $3.2 billion, based on a price of 4 cents a cubic meter.
He added that it would take three years and four years to reach maximum oil and gas production, respectively. Mirmoezzi said Iran also plans to invite foreign participation into the project DJ wrote.
© 2000 Mena Report (www.menareport.com)