Sanctions...what sanctions? Ukraine to invest $800mln in Iranian oil sector; India continues to buy Iranian oil

Ukraine to invest USD800mln in developing three Iranian oil fields
Press TV
Mon Feb 20, 2012 6:51PM GMT


-Updated Feb 23, 2012:
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Iran has signed a contract with a consortium consisting of Iranian and Ukrainian companies for the development of Kouhmond, Boushkan and Kouhkaki oil fields.

Naft Gas Prom Pars consortium will invest about USD 800 million in
developing three Iranian oil fields., photo credit: PressTV

The contract, valued at about USD 800 million, was signed on Monday between the Petroleum Engineering and Development Company, an affiliate of the National Iranian Oil Company (NIOC), and Inter Naft Gas Prom Pars Co., which is a consortium of Iranian and Ukrainian entities.

NIOC managing director, Ahmad Qalebani, told reporters that the consortium would invest about USD 800 million in the development of the three Iranian oil fields.

Kouhmond heavy oil field is located 80 km to the east of Bushehr port in southern Iran. Though eight wells have been already drilled in the field, only two wells are meant for heavy oil production. The field's in-place heavy crude reserves have been estimated at about one billion barrels.

Kouhkaki oil field is located northeast of Kouhmond about 15 km south of the city of Khormoj where only one well was drilled in 1973. The field contains light crude with estimated in-place reserves of about 780 million barrels.

Boushkan oil field is located 100 km north of Bushehr and 30 km from Dalan gas field. The field’s in-place reserves have been estimated at about 340 million barrels with a single well drilled in 1963.

The fields will be developed in two phases to produce 11,000 barrels per day (bpd) of crude oil after the completion of the first phase, which will hit 22,000 bpd when the second phase is finished.

A total of 18 heavy and extra heavy oilfields have so far been discovered in Iran, including Ferdowsi oil field in the Persian Gulf, which is one of the country's biggest heavy oil fields with proven reserves of more than 31 billion barrels.

Iran's total in-place oil reserves have been estimated at more than 560 billion barrels with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.

Iran holds the world's third largest proven oil reserves and the second-largest natural gas reserves.

SS/AZ/HGH

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