Iran signs USD13 billion worth of fresh oil agreements
Date
3/26/2024 4:05:15 AM
(MENAFN) Iranian energy companies secured their largest contracts in the past decade on Sunday, marking a significant move by Tehran to enhance output at major oil fields. The contracts, valued at USD13 billion, aim to develop deposits and increase production by up to 350,000 barrels per day. The signing ceremony, attended by Oil Minister Javad Owji and National Iranian Oil Company (NIOC) Managing Director Mohsen Khojastehmehr, took place just two days before the 73rd anniversary of the nationalization of Iran's oil sector, previously operated by the British-controlled Anglo-Iranian Oil Company.
The initiative is poised to enable Tehran to utilize local resources for the development of its energy sector. In a related development, Iran recently announced the awarding of USD20 billion in contracts to domestic firms to bolster production from the offshore South Pars gas field in the Persian Gulf, which it shares with Qatar.
The focus of the output increase will be on six fields, including Azar, Azadegan (the country's largest deposit), and Masjed Soleyman (the oldest producing deposit in the Middle East).
Notably, the first two fields are shared with Iraq along Iran's western and southwestern borders.
Iran's shift towards domestic energy firms gained momentum in 2018 when many multinational companies exited the country's energy market following the United States' withdrawal from the 2015 Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA). Despite the challenges posed by sanctions, Iran holds the world's third-largest proven oil reserves, according to the International Energy Agency (EIA), positioning it as the seventh-largest crude producer globally in 2022.
MENAFN26032024000045015687ID1108021328
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.