Enterprise Oil signed a participation agreement with Petropars Ltd. to take a 20 percent interest in Phases 6, 7 and 8 of the South Pars gas field development project offshore Iran.
The transaction is subject to approval of National Iranian Oil Co. and certain other conditions. Enterprise agreed to provide technical assistance to Petropars and contribute up to $15 million toward the cost of a future appraisal program.
Enterprise will work jointly with Petropars in all aspects of the development; about 30 production wells will be drilled from three wellhead platform complexes, each with a 32-inch diameter pipeline to shore, where gas processing will take place.
Phases 6, 7 and 8 of the South Pars development will together produce 3 Bcf/d of gas and 120,000 b/d of condensate. Enterprise will receive its share of revenue on a buy-back basis under a service contract.