NISOC Set to Finalize First IPC-Based Deal by March

The National Iranian South Oil Company is appraising the proposals of foreign and domestic oil firms for developing four oilfields in the southern oil-rich province of Khuzestan. the company`s chief executive officer said. hoping that the first deal will be signed by the yearend.
Bijan Alipour also said on Sunday that the state-owned company is scrutinizing proposals to develop four major oilfields. namely the onshore Shadegan. Rag Sefid. Karanj and Parsi fields. Shana reported.
`Plans are in place to finalize a deal within the framework of Iran Petroleum Contract. the country`s new model of contracts for oil and gas projects. sometime in March next year.` the official news portal of the Oil Ministry. NISOC`s contractual model conforms to the outlines of IPC. such as terms of 20-25 years and higher rewards for riskier projects. but differs in specifics.
According to the official. Pasargad Energy Company. Persia Oil and Gas Industry Development Company. Tenco and MAPNA Group are among domestic companies that signed agreements with NISOC and agreed to submit the result of their technical studies within six months.
`International energy groups. namely Schlumberger Ltd. the world`s leading oilfield services provider. Pergas Consortium. Russia`s oil company Tatneft and Zarubezhneft. a Moscow-based oil enterprise. are also studying the oilfields.` Alipour said. noting that different committees are analyzing and comparing some of the master plans economically. technically and executively.
Asked about finalizing a deal. Alipour said the first IPC-based contract to develop one of NISOC`s oilfields. most probably Shadegan. will be signed in two months.
With regard to the benefits of drawing on the experience of foreign firms. the NISOC chief noted that negotiations have been held with 33 international enterprises to cooperate in joint ventures and several memoranda of understanding have been signed and NISOC is revising the result of technical studies.
`We need to raise more than $10 billion to develop the four oilfields.` Ahmad Mohammadi. a deputy director at NISOC. said. adding that the development of each field is estimated to cost approximately $3 billion.
NISOC. the largest subsidiary of Iran`s state oil company. is assigned with the development of oilfields in Khuzestan with a total of nine reservoirs. based on the company`s customized IPC framework.

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