12 June 2006
KUALA LUMPUR, Malaysia: Malaysia's national oil company Petronas said Monday it expects to decide by the third quarter this year whether to proceed with a $2 billion (1.7 billion euro) joint venture in Iran to develop the world's largest offshore gas field.
According to AP, Petronas has a 20 percent stake in South Pars liquefied natural gas, or LNG, project in Iran. France's Total SA has a 30 percent stake, while the National Iranian Gas Export Company holds the remaining 50 percent.
"The partners haven't come to a final investment decision ... we hope to be able to decide by the third quarter this year whether the project will go ahead or not," Petronas chief executive Mohamad Hassan Marican told reporters on the sidelines of a regional oil and gas conference.
He did not give details. Petronas said last year it was evaluating the viability of the project and was still in negotiations over commercial terms.
Iran sits on the world's second largest proven gas reserves after Russia. South Pars, which is believed to be the world's largest gas field, is shared by Iran and Qatar.
It is estimated to hold equal to seven percent of the world's total gas, and 38 percent of Iran's reserves.
Earlier, Hassan said Petronas expects to maintain its daily production of oil and condensate of 720,000 barrels and 5.5 billion cubic feet of gas to meet growing domestic demand.
Petronas' Kikeh oil field, off the coast of Borneo island, is on track to start production of 120,000 barrels a day by fourth quarter of 2007, while the Gumusut deepwater reserve should come on stream by 2011 with 150,000 barrels a day, he said.
KUALA LUMPUR, Malaysia: Malaysia's national oil company Petronas said Monday it expects to decide by the third quarter this year whether to proceed with a $2 billion (1.7 billion euro) joint venture in Iran to develop the world's largest offshore gas field.
According to AP, Petronas has a 20 percent stake in South Pars liquefied natural gas, or LNG, project in Iran. France's Total SA has a 30 percent stake, while the National Iranian Gas Export Company holds the remaining 50 percent.
"The partners haven't come to a final investment decision ... we hope to be able to decide by the third quarter this year whether the project will go ahead or not," Petronas chief executive Mohamad Hassan Marican told reporters on the sidelines of a regional oil and gas conference.
He did not give details. Petronas said last year it was evaluating the viability of the project and was still in negotiations over commercial terms.
Iran sits on the world's second largest proven gas reserves after Russia. South Pars, which is believed to be the world's largest gas field, is shared by Iran and Qatar.
It is estimated to hold equal to seven percent of the world's total gas, and 38 percent of Iran's reserves.
Earlier, Hassan said Petronas expects to maintain its daily production of oil and condensate of 720,000 barrels and 5.5 billion cubic feet of gas to meet growing domestic demand.
Petronas' Kikeh oil field, off the coast of Borneo island, is on track to start production of 120,000 barrels a day by fourth quarter of 2007, while the Gumusut deepwater reserve should come on stream by 2011 with 150,000 barrels a day, he said.
© Iran Daily 2006
