Pertamina, NIOC signed giant oil field development in Iran

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Photo by Pertamina

JAKARTA (TheInsiderStories) – Indonesia state owned energy giant PT Pertamina has sealed a head of agreement with the National Iranian Oil Company (NIOC) to conduct preliminary study of two giant oil field in Iran, namely the Ab-Teymour and Mansouri.

The agreement signed was by Pertamina’s President Director Dwi Soetjipto and NIOC Managing Director Ali Kardor. Beside the upstream business opportunities, the two companies also agreed to explore other business opportunities.

“We are serious to make upstream investments that will support Iran in improving production, on the other hand this move is in line with the company’s efforts in support of national energy security,” said Dwi.

Based on the agreement, Pertamina had six months to conduct a study and submit a preliminary proposal on further development of both onshore field which has reserves of more than 5 billion barrels.

Pertamina says it plans to invest in four operating oil and gas blocks in Iran. Dwi expects the supply of crude oil from Iran will be delivered to the private refinery in Situbondo, East Java. Pertamina would be the off-taker of private refinery products.

“We are interest in 4 blocks, two onshore and 2 offshore. All the blocks are already operating,” he said.

End of June, Pertamina and National Iranian Oil Company (NIOC) signed liquid petroleum gas (LPG) contracts with a volume of 88,000 tonnes in 2016. Iran is also looking for long-term contract to deliver 500.000 tonnes of LPG to Indonesia with total value of US$60 million.. 

The signing of the Liquefied Petroleum Gas (LPG) contract with Tehran is a turning point and the first step towards enhancing cooperation between Iran and Indonesia. The plan first shipment of LPG from Iran to Indonesia will be conducted in September 2016.

Indonesia imports half of its cured oil needs and it is ready to buy 150,000-200,000 barrels of oil per day of crude oil from Iran. While,  Iran is currently preparing the Iranian Petroleum Contract that would mark a new chapter in the country’s oil and gas industry.

 

The post Pertamina, NIOC signed giant oil field development in Iran appeared first on The Insider Stories.

Source: The Insiderstories
Pertamina, NIOC signed giant oil field development in Iran

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