The Iranian minister of petroleum, who was speaking to reporters on the sidelines of an MoU signing ceremony with Russia’s Gazprom, said “so far, negotiations have been held with various Russian firms like Lukoil, Tatneft, Zarubezhneft and Gazprom on development of seven Iranian oil fields.”
Bijan Zanganeh urged oil companies of Russia to submit technical proposals to NIOC within the envisaged time periods by conducting study phases for expansion of Iranian fields; “financial proposals need to follow technical ones and the developmental projects will be implemented once talks over contract frameworks become finalized.”
On sales of crude oil to Russian firms, the official explained that agreement had been reached over sales of 100 thousand barrels per day of crude oil to Russia; “I have encouraged Russian Energy Minister Alexander Novak to finalize the oil sales deal in the coming two days.”
He stressed that, in case of reaching a final deal, half of the oil sale revenue will be received through technical and engineering services while the rest is scheduled to be supplied in cash.
Zanganeh, while recalling that Iran’s cooperation with Russia and China remains as strategic policy pursued in the post-JCPOA era, said the country sought to diversify the parties for development of fields.
He went on to touch upon development of South Azadegan joint oilfield stating “several European and Asian companies have so far made proposals to develop the field as well as that a private tender will be invited soon with attendance of foreign firms.”
He stressed that all foreign companies eager to develop Azadegan were required to have an Iranian partner; “Iran would consent to formation of a consortium if a foreign company, along with partnership with an Iranian firm, is eager to join hand with other foreign parties.”
Zanganeh further referred to the developments ahead of global oil markets following the oil freeze deal reached between OPEC and non-OPEC oil producers saying “oil prices are difficult to predict though certain signs indicate that prices will stand firmly between 50 to 55 dollars per barrel.”
Iranian oil minister said reports revealed that crude prices had taken up an upward trend recalling “the rise comes at a time when no actual reduction has yet taken place in production levels since OPEC output will go down as of January, 2017.”
He expressed optimism towards the future of oil market reiterating “the accord between OPEC and non-OPEC producers holds greater significance than figures or numbers since it lead to a healthy and balanced market, a fact which has been realized by the market.”