A Memorandum of Understanding was signed on Monday 17 July in Tehran by Gholamreza Manouchehri, Deputy Managing Director of NIOC, Hamid Akbari, CEO of Petropars and Hiroshi Sato, Toyo’s Director of Energy Business Unit, aiming to renew the Salman oil and gas field’s facilities and to boost production.
The Salman field is located in the Persian Gulf, in Hormozgan province. It contains several layers of crude oil and a layer of gas. 70% of the oilfield is in Iran and the rest is in Abudhabi of the UAE.
Currently, Iran is pumping 60,000 barrels of crude and about 2.2 million cubic meters of gas per day from the field, according to the recent statistic.
According to the agreement, Iran’s Petropars as a subsidiary of NIOC is committed to finance the feasibility studies of Phase 1 of the project and Japan’s Toyo will provide financing for the implementation of the Phase 2.
Petropars was established in 2002 in Kish Island aiming to manage and invest in the oil and gas petrochemical projects and is engaged in the engineering, evaluation and assessment of projects, drilling and production of oil and gas in Iran and other countries.
Toyo Engineering Corporation of Japan established in 1961 operating internationally mainly in oil, gas and petrochemical sectors focusing on procurement and construction of hydrocarbon and petrochemical plants.
Toyo provides wide range of services including research, development, design, engineering, equipment procurement, construction, testing and technical guidance in oil, gas and petrochemical fields.
Manouchehri stated in the ceremony, Toyo’s history in Iran dates back to 1980 with aim of operating in South Pars 6, 7 and 8 projects. He pointed that Iran is willing to cooperate with Asian oil and gas companies in development and implementation of the Iran’s projects.
The NIOC, National Iranian Oil Company, is a government-owned corporation which is in charge of the exploration, extraction, transportation and exportation of crude oil and natural gas.
The agreement is the first MoU of its kind inked after implementation of the Joint Comprehensive Plan of Action (JCPOA) which was signed on July 2015, among the P5+1, the European Union (EU) and Iran.
The final deal will be sealed in the form of within Heads of Agreement (HOA) subsequently.
This is the second oil and gas development agreement which was signed by Petropars this month. And is the first offshore project of Toyo in Iran.