OT: Magical ride on Persian Carpet
Upstream, June 21
Vahe Petrossian
Iran is evaluating 2D seismic data from Iranian waters in the Persian Gulf and Sea of Oman as the precursor for potentially one of the biggest-ever offerings of exploration blocks, which could kick off this year.
One foreign expert said the tender could start by the end of this year "or even in September" although another source caitioned the process might not start until early 2002.
Mahmoud Mohadess, director of exploration at the National Iranian Oil Company (NIOC), said the areas, covering about 100,000 square kilometres, "will be opened up as soon as possible". He would not specify a date but said it was Iran's policy to be "more active in the Persian Gulf".
Little is publicly known about the areas to be tendered but several sectors in the northern Gulf and near the Strait of Hormuz are described as "very promising". One possibly giant reservoir in the north has already been dubbed "big brother" in anticipation. "There are about 100 interesting structures," said Trond Christoffersen, chief executive of Norway's Global Geo Services (GGS).
Persian Carpet 2000 (PC 2000), a 2D survey of Iranian waters in the Gulf and beyond, is being completed by GGS. The main part of the two-year survey will be ready in two months, with the shallow-water study being completed by year end.
Several international companies -- including Statoil, TotalFinaElf and Agip -- have purchased 2D data from GGS.
There is talk of exploration licensing laws being amended by the Majlis (parliament) by September to make offshore exploration more attractive to foreign investors. However, Mohadess said existing legislation does not need any changes and, at best, there might be "some tinkering".
Oil Minister Bijan Zanganeh said recently there would only be minor modification of existing legislation. Teams from the parliament's energy and oil committee visited the UK, France, Norway and the Netherlands in April and late May to acquaint themselves with exploration licensing legislation, said one source. Some members of parliament have been urging new legislation to be put in place by this summer offering internationally more competitive terms to potential investors. Of particular interest to the team were Norwegian licensing laws, said the source.
A Norwegian Petroleum Ministry official would not reveal the contents of talks during the delegation's four-day stay, which included visits to the offices of Statoil and Norsk Hydro. Another team earlier had talks with Shell and BP in London and visited UK oil facilities in the North Sea.
One of the complaints of foreign companies about Iranian legislation is that the higher cost of offshore exploration is not taken into account. "They have to rethink the terms," said a European oilman.
Mohadess said: "We are already talking with foreign investors about two to three offshore blocks outside the PC 2000 framework." The additional costs involved in offshore exploration are only in the 10% range, he said.
GGS and Iranian officials said the Persian Gulf offers rich pickings. Early this year, Mehdi Mirmoezi, head of NIOC subsidiary Petroleum Development & Engineering Company (Pedco), revealed the "discovery" of massive crude reserves in shallow northern Gulf waters. The discovery was later described as "a reflection of potential" rather than an actual field.
Foreign experts working in the area now say there is evidence of a massive field in the northernmost Hendijan region. "One anticline of 16 kilometres has already been established," said a source.
Sources said some foreign experts are advising NIOC to restrict the planned exploration blocks to 200 square kilometres each. The resulting several hundred blocks would be tendered perhaps 20 at a time. The process could go on for a decade, said a source.
Mohadess said NIOC wants all the data in before dividing up the area to ensure the blocks eventually put on offer "are balanced". PC 2000 data is now being evaluated by NIOC's own experts, he said. |
