Deputy oil minister, while describing the oil deal with Total for development of South Azadegan oilfield, said the French company needs to offer its technical bid in six months.
“So far, a preliminary Memorandum of Understanding (MoU) has been sealed with Total S.A. Company over the expansion of South Azadegan oil field though it is not equal a final contract and the project has not been assigned to the French company yet,” said Roknodin Javadi.
The official underlined that Total is required to present its technical bid in six months’ time asserting “however, the pricing issues are not at stake before the envisaged time for making the proposal.”
Deputy oil minister maintained that several eminent European and Asian firms have voiced willingness to develop the Iranian oil field; “the inking of a MoU would not give Total of France a higher priority for carrying out the project.”
The official underlined that “if only one company is eager to develop an Iranian oil or gas field, negotiation will be conducted with that single agent before reaching a final accord; however, if several firms simultaneously apply to take up the project, development of the field will be awarded through tender.”
Emphasizing that expansion of South Azadegan’s first phase is being implemented by 18 Iranian drilling rigs, Javadi reiterated “all ongoing negotiations with European and Asian companies mainly pertain to the development of the second phase of the joint oil field.”
Iran’s Oil Minister Bijan Zanganeh had conferred about the issue with Stephane Michel, President of Middle East, Exploration & Production Division at Total SA, last week on the sidelines of the 169th ordinary meeting of OPEC.
Total SA marks the first major European oil company which signed a deal to purchase 160 thousand barrels of Iranian crude per day.
Zanganeh, while confirming the launch of oil talks between National Iranian Oil Company (NIOC) and France’s Total over the expansion of South Azadegan field, had noted “a confidentiality agreement will soon be signed with Total over the development of the joint field.”
Earlier, the Project Director of the Development Project of South Azadegan Seyyed Mahmoud Mar'ashi estimated that the required volume of investment for the project will be less than five billion dollars; “accordingly, certain negotiations have also been held with Hyundai Oilbank of South Korea as well as Japan’s Marubeni Corporation in addition to Total SA.”
At the present time, the Majnoon oil field development consortium led by Royal Dutch Shell, in partnership with Malaysia’s Petronas and Iraq’s Missan Oil Company, are extracting a daily average of 210 thousand barrels of crude oil from the company.