The National Iranian Oil Company (NIOC) has formalised its third licensing round for 17 mainly onshore blocks, inviting foreign investors to a presentation in early February in Vienna even as the US mounts a new campaign to isolate Iran.
NIOC listed the 17 blocks on offer at the turn of the year, saying an overall minimum investment of about $600 million would be required.
NIOC managing director Gholamhossain Nozari and senior exploration officials will outline recently modified terms for the buy-back formula used for exploration and development projects in Vienna on 1 and 2 February.
The new terms are aimed at reducing the risk for investors.
Last year, Nozari told Upstream that up-front costs would be reduced for investors and they would be offered longer-term contracts. Last week, exploration boss Mahmoud Mohadess said NIOC has reduced its expected profit margin and cut the amount of bond required.
NIOC will follow the Vienna presentation by opening up its data room from 5 February to 14 March.
Bidders will have to submit technical, financial and commercial proposals in three separate envelopes by 20 June.
Tender documents can be purchased up to 13 June for sums ranging between8000 and38,000 ($10,600 and $50,500). A bid bond of150,000 will be required.
All the blocks are outside the traditional oil producing region in the south-west, and are therefore considered high-risk.
The five offshore blocks are rated by NIOC as the least risky and lie in the Persian Gulf.
Two of them, Ferdows and Dayyer, were tendered in Iran's first licensing round for eight offshore blocks in 2003.
Four of the onshore blocks are carryovers from the second licensing round in 2004 and include Raz, a block under negotiation for nearly two years with sole bidder OMV of Austria. There was no immediate Iranian explanation for the re-tendering of the Raz block, on the Turkmenistan border in the north-east.
An OMV official said the company was not surprised as there had not been active talks for about a year, and the outfit had been told the block could be put back in tender. He added it was possible OMV could pursue the scheme under new conditions.
© Upstream 2007
