The NIOC plans to award the development of three major southern oil fields to its subsidiary National Iranian South Oil Company (NISOC): Maroun, Bibi Hakimeh, and Ahvaz. NIOC announced on 19 August that it is waiting for NISOC to present the related MDPs for the fields.
NISOC, however, claims it has found faults in the development studies that Statoil and the Research Institute of the Petroleum Industry (RIPI) carried out, according to NIOC planning director Abdolmohammad Delparish. The NIOC is therefore waiting to see how NISOC amends the MDPs, Delparish said, and NISOC is expected to finalise its opinion on the MDPs by November.
The media reported last September that NISOC had not approved the results of the development studies.
The main flaws were in areas such as petroleum engineering, geology, and reservoir engineering. NISOC had also rejected projections for investment requirements and production scenarios.
The election of President Ahmadinejad in June 2005 and the appointment of new players brought directors from southern regions mostly from NISOC to power in several major oil sector decision-making institutions. The newly promoted directors started to expand the authorities of regional powerhouses, particularly NISOC.
For example, last May the NIOC transferred the authority to make decisions for the development of eight major oil fields in Khuzestan province from Petroleum Engineering and Development Company (PEDEC) to the NISOC. The fields were Gachsaran, Rag-e Sefid, Kerenj, Parsi, Shadegan, Ahvaz-Bangestan, Maroun-Bangestan, and Mansouri.
Analysts viewed this as part of a struggle by NISOC directors to regain their authority, which had been reduced by former petroleum minister Bijan Namdar Zanganeh (1997-2005). The planned development of Maroun, Bibi Hakimeh, and Ahvaz oil fields is another indication of the increasing power of southerners in oil sector decision making institutions. A further sign is the option to award Azadegan development to NISOC if Japan's INPEX withdraws from the project.
The current issue of IRAN STRATEGIC FOCUS also includes the following
Commentary
Iran policy shaped by complex dynamics of the US domestic scene the next few weeks an important phase
Month in review
Foreign relations: Diplomacy still on the agenda; Solana/Larijani meeting, Khatami in the US
Domestic events: Crackdown on social freedoms and fear for political prisoners
Economic issues: Privatization measures
Key risks and signs in International relations and Domestic politics
Speciall feature
Controversy hits Romania's Grup Servicii Petroliere (GSP) in Iran over fate of disputed rigs; International companies urged to pay extra attention to contracts
Oil and Gas
Blocks: NIOC puts 24 E+D blocks on tender
Master Development Plan (MDP) to change in buy-back contracts
Deals: NIOC to award Maroun, Bibi Hakimen, Ahvaz; Iran, Oman negotiating development of Hengam
Upstream project update and South Pars update
OICs: Total to continue oil, gas plans in Iran; Pan Andean eyeing Iran Project; Statoil denies investment in Kharg
Pipelines: Iran to construct new pipeline in Europe; Preliminary ops of Iran-Armenia pipeline done; crude production will fall short by 2010
Refineries: Parsian gas plan, PDVSA to cooperate with Iran, Indonesia
Economy and Finance
Macroeconomic issues: Iran to continue gasoline imports; Iran Ranking - World Bank Report
Foreign investment: government to amend investment law
Banking, finance, stock market: Iran threatens to shift foreign reserves our of $US
Oil Surplus Fund: Majles organizes withdrawals
Tobacco industry: Taha Taheri new top man
Telecommunications: NTN cuts key target in Iran
Iran Diary
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Menas Associates 2006
