News ID: 188773
Published: 0656 GMT March 05, 2017

Iran may award Kish deal to Shell

Iran may award Kish deal to Shell

Iran may begin talks with global energy giant Shell on the development of Kish gas field which holds the country's largest reserves of natural gas after South Pars.

Managing Director of Petroleum Development and Engineering Company (PEDEC) Noureddin Shahnazizadeh told IRNA that a planned tender on Kish might be scrapped since no other company had approached Iran on the project.

Shahnazizadeh noted that Shell was already studying the field based on an agreement signed with National Iranian Oil Company (NIOC) in December.

He added that the NIOC could accordingly enter into development talks with Shell which is to complete its studies over Kish by July.

The official, whose company is a subsidiary of the NIOC and is in charge of the development of certain southern oil and gas fields, further underlined that an Iranian company had also voiced interest in providing funds for developing Kish gas field.

Kish gas field is located off Kish Island in the Persian Gulf. With reserves amounting to 70 trillion cubic feet, the field is expected to produce about four million barrels of condensate as well as nine billion cubic meters of natural gas once fully developed.

The basic agreement that was signed with Shell involved studying not just Kish field but also two other major Iranian oil projects — South Azadegan and Yadavaran.

South Azadegan and Yadavaran are located in Iran's southwestern oil-rich Khuzestan Province and already have an early production of 40,000 bpd and 85,000 bpd, respectively. The two fields are expected to boost Iran's oil production capacity by over 600,000 bpd once fully developed within the next three years.

Hans Nijkamp, the head of the department for Iran affairs at Royal Dutch Shell, told reporters after signing the agreement that it marked a new chapter in relations between Shell and Iran.

Nijkamp further said that Shell was determined to enter into a long-term cooperation with Iran, stressing that this could have significant positive impacts for both sides.

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