Iranian NIOC to apply Tatarstan's experience in heavy oil production
KAZAN. Dec 19 (Interfax) - National Iranian Oil Company (NIOC) and OJSC Tatneftekhiminvest Holding (coordinates the activities of oil and gas chemical enterprises in Tatarstan) signed a memorandum of understanding on Sunday, in which Iran hopes to apply Tatarstan's experience in heavy oil production, the Tatarstan president's press service said.
The document provides for cooperation in developing the Iranian field Zageh on the coast of the Persian Gulf. The Iranian information agency Shana said that the contract is worth $1 billion.
The first phase of development foresees daily output reaching 7,000 barrels a day. Daily output will increase to 55,000 barrels a day during the second phase.
The first well at the field was drilled several years ago but has been since mothballed. A second will should be drilled in the future. A total of 11 wells will be drilled, including nine production wells.
The Shana agency said that the Iran's Tat Bank would take part in financing the field's development.
"There are heavy oil reserves at the Zageh field, and Iran is interested in Tatarstan's work in producing it. The signed memorandum envisages the creation of a joint working group that will consider and search for practical ways to implement the reached agreements," the Tatarstan president's press service said. The statement also said that Iran expects to utilize Tatarstan's experience and scientific development in the area of oil production.
As reported, OJSC Tatneft has fulfilled a service contract on researching the Zageh heavy oil field in Iran.