The Japan National Oil Corporation (JNOC) will invest $13.8 million in the Netherlands-registered JJI S&N BV consortium. The move is required to allow for the recipient firm to obtain financing for its share in the Soroosh/Nowrooz oil development project in Iran.
JNOC is also expected to provide JJI S&N BV with a $60 million loan guarantee. JJI S&N BV acquired in December 2002 a 20 percent participating interest in the service contract for the integrated development of Soroosh and Nowrooz oilfields offshore Iran, some 80 kilometers southwest of Kharg Island.
Shell Exploration B.V. initiated the $800 million Soroosh/Nowrooz development project in November 1999. As a buy-back deal signed by the National Iranian Oil Company (NIOC), participants are compensated for their investment from the oil production revenues.
On both the Soroosh and Nowrooz oil fields, development work is being implemented in order to achieve full-scale production as prescribed in the service contract. It is expected that full-scale production will be realized by the end of 2003.
JJI S&N BV’s shareholders include Japan Petroleum Exploration (Japex) with a 41.67 percent interest, Indonesia Petrolelum (Inpex) with 25 percent of the shares and Japan National Oil Corporation (JNOC) with 33.33 percent.
The Soroosh/Nowrooz fields are expected to flow up to 190,000 barrels of oil per day (bopd) by the end of the third quarter of 2003, after the Nowrooz oilfield goes on stream. Soroosh already produces 60,000 bopd since late 2001. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
