The Organization of Petroleum Exporting Countries (OPEC’s) third largest oil producer, Iran, plans to revive its energy sector, following the lifting of international sanctions, by offering oil and gas fields to international bidders. Iran has been trying to restore its oil industry since emerging from international sanctions over its nuclear program earlier this year.
The country’s deputy oil minister welcomed a preliminary agreement by OPEC nations to limit output to between 32.5 million and 33 million barrels per day. The deal by OPEC was reached in late September, with the aim reducing a global depression of oil prices for over two years.
With production exceeding 3.5 million barrels of crude per day, the OPEC producer hopes to attract more than $150 billion in technology-intensive foreign investment in its oil, gas and petrochemical industry by 2020.
The National Iranian Oil Company (NIOC) has given international companies a month to submit prequalification bids for 50 oil and gas contracts.
Oil companies will be able to bid for a contract to develop the South Azadegan oil field as early as Nov. 19, and NIOC will award the contract by early 2017, according to a leading oil official. The Oil Ministry’s website said foreign companies should submit their applications by Nov. 19, and that successful companies would be announced on Dec. 7.
The NIOC said selection for the long list will be based on a scoring system that will take into account:
- The company’s creditworthiness based on ratings by Moody’s, S&P and Fitch
- The company’s present oil and gas production level
- The company’s record of success in working in international projects
- The company’s technical competence as an oil and gas field developer. Experience of working in Iran will account for only 5 per cent of the total capability score.
The projects listed include 32 new oil and gas fields including including South Azadegan, South Pars oil layer, Changuleh, Darquian third phase, Golshan, Ferdowsi and Jufair. A total of 18 brownfield projects are also listed including the Tang-e-Bijar and Ilam refineries.