September 3, 2008

Gazprom Moves To Take Over From Total In Iran

By Anonymous

Just days after French oil giant Total withdrew from its planned multibillion-dollar gas investment project in Iran, Gazprom decided to enter the market with its own multibilliondollar deal to develop Iranian oil and gas fields. Iran offered Gazprom an extended package for the development of oil and gas fields; construction of refineries; transfer of oil from the Caspian Sea to the Sea of Oman; development of Iran's North Azadegan oil field; exchange of technology and experience; and the possible participation of Gazprom in the planned pipeline between Iran, India and Pakistan. Azadegan is Iran's biggest onshore oil field with an estimated 42 billion barrels of crude oil. Iranian firms began working on the field in February after the Japanese partner, Inpex, quit the project.

The accord also includes the future formation of a joint company between the two countries for cooperation in oil and gas. It's unclear whether the South Pars gas field will be included in the deal.

The South Pars field in the Gulf has around 500 Tcf of gas, which accounts for about 8% of the world's gas reserves.

Copyright Oildom Publishing Company of Texas, Inc. Aug 2008

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