TEHRAN- The Director of Engineering and Development of the National Iranian Oil Company announced the ratification and start of executive operations of five oil and gas field development contracts worth $13.6 billion in the 14th government, and said: With the implementation of these contracts, daily production capacity will increase by more than 600,000 barrels of oil and 30 million cubic meters of gas.
According to a Shana report, Reza Aqebati also announced the signing of new development contracts in the 14th government and said: In addition to the start of executive operations of five contracts, so far about $9.3 billion in contracts have also been signed in the upstream development sector, and these contracts are in the stage of ratification and obtaining the necessary permits.
Referring to the memoranda of understanding signed for the development of fields, he stated: In the 14th government, about 40 memoranda of understanding have been signed, covering 39 oil and gas fields.
The Director of Engineering and Development of the National Iranian Oil Company added: If these MOUs are converted into contracts, it will be possible to sign contracts with an investment value of more than $37 billion.
Aqebati named the Lavan, Khartang, and Sefid Zakhur gas fields as part of the fields considered for development and said: Negotiations are also underway for the development of the Yadavaran field with domestic and foreign investors, and we hope these negotiations will yield results in the shortest possible time.
Referring to the measures taken to facilitate the investment process in the upstream oil industry, he said: The National Iranian Oil Company, in cooperation with the government and the Plan and Budget Organization, has received an approval from the Council of Ministers under which, based on the regulation for the development and increased production of gas fields and the allocation of produced gas to energy-intensive industrial units and petrochemical units, suitable capacity has been created to attract investment from these industries in the development of gas fields.
The Director of Engineering and Development of the National Iranian Oil Company, referring to the time gap between the signing of a contract and its ratification and the start of executive operations, said: After the signing of a contract, going through the ratification stages and the contract entering the executive phase requires time; therefore, the National Iranian Oil Company has put a solution called signing initial and preliminary contracts on its agenda.
Aqebati emphasized: By using the capacity of initial and preliminary contracts in the period between signing and ratification of the main contract, part of the initial measures and preparations for field development can begin so that projects enter the executive and development phase more quickly.
Referring to the country’s significant capacities in the oil and gas sector, he stated: Iran holds the world’s third-largest proven oil reserves and second-largest proven gas reserves, and ranks first in the world in total oil and gas reserves.
The Director of Engineering and Development of the National Iranian Oil Company added: Converting potential reserves into actual and sustainable production capacity is one of the main tasks of the upstream development sector of the oil and gas industry, and in this path, important measures have been taken in the 14th government to develop fields and increase production capacity.
MA
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