Iran delays South Pars announcement

Published March 14th, 2001 - 02:00 GMT

Iran intends to announce the winning bidders for developing phases 9-12 of the massive South Pars natural gas field in the coming weeks, an Iranian official said on March 13th.  

 

“Today is the closing day on South Pars 9-12. We plan to announce the winner in about 10 days,” the official said. Earlier reports had indicated that the winners would be unveiled on March 13th.  

 

The phases are to be awarded either on Iran’s standard buy-back terms, under which foreign companies recoup their investments through production sharing, or through direct financing.  

 

The official indicated that U.S. firms, prohibited from investing in Iran’s oil sector by U.S. unilateral sanctions against Tehran, had not submitted bids.  

 

A total of 24 companies had placed bids for the project, with 20 still in contention for the phases.  

 

Petropars, a semi-official Iranian oil company which has been heavily involved in other phases of the project, was not included in the bidding process.  

 

Industry sources have estimated that each phase would require investment of about $1 billion.  

 

Contracts worth more than $7 billion have already been signed covering the first eight of the project’s 25 phases, but implementation of the project has been slow. 

(oilnavigator)  

© 2001 Mena Report (www.menareport.com)

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