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Indian ONGC Videsh to take part in development of Iran's oil field

Mar 06, 2018 (TREND News Agency via COMTEX) --

Baku, Azerbaijan, March 6

By Gazenfer Hamidov - Trend:

Indian oil company, ONGC Videsh will take part in development of Iran's Susangerd oil field.

ONGC Videsh signed a Memorandum of Understanding on March 6 with IDRO Oil, a subsidiary of Iran's government-owned IDRO (Industrial Development & Renovation Organization), for cooperation in development of the oil field, IDRO said.

ONGC Videsh engages in prospecting for and acquisition of oil and gas acreages outside India for exploration, development, and production of crude oil and natural gas. It has 38 oil and gas projects in 17 countries, including Vietnam, Russia, Sudan, South Sudan, Iran, Iraq, Libya, Myanmar, Syria, Brazil, Colombia, Venezuela, Kazakhstan, Azerbaijan, Mozambique, Bangladesh, and New Zealand.

Nasrollah Zarei, CEO of IDRO Oil said that under the deal signed with the Indian side, the parties will establish a joint working group in this regard. After achieving final agreement the sides will negotiate with National Iranian Oil Company to sign development contract for Susangerd field.

Zarei further said that his company has already signed a similar MoU with Russian oil company, Zarubezhneft, adding that IDRO Oil is studying possibility of forming a consortium in this regard.

He added that after signing a MoU with Austria's HOT Engineering as international consultant, IDRO put preparing a master development plan (MDP) for Susangerd field on its agenda

He forecasted that the proposal for the field's development will be submitted to National Iranian Oil Company (NIOC) in mid March.

Zarei said that his company was negotiating with various companies in last months to attract a reputable foreign investor for the project, which resulted with signing cooperation documents with Zarubezhneft and ONGC Videsh.

Susangerd oilfield, which was discovered in 2009, is estimated to hold more than 6 billion barrels of in-place oil reserves.

It is planned that 30,000 barrels of oil to be extracted from the field on a daily basis.

According to Zarei, some $900 million worth of investment will be needed for the field's development project.

Last May, IDRO signed a MoU with NIOC to carry out studies for development and increasing oil recovery rate of Susangerd, Cheshmeh-Khosh and West Paydar oil fields in partnership with a reputable international company.

Mansour Moazzami, managing director of the IRDO said last July that after studies, IDRO will sign a contract for development and exploration of Susangerd oil field as well.

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