Some Companies Investing in Iran’s Energy Sector…

Some Companies Investing in
Iran’s Energy Sector…

Since 1996

Total (France)

• In September 1997, Total signed a $2 billion contract along with Gazprom and Petronas Malaysia to develop phases 2 and 3 of the South Pars natural gas field.  Total has since expanded its involvement to other portions of the South Pars fields. (Congressional Research Service, August 2006)

• In February 1999 Total and ENI began operating in Iran’s Doroud oil field with an investment of $1 billion. Total is operator of the project, with a 55% share, while ENI holds the other 45%. (Energy Information Agency, Department of Energy, August 2006)

• In April 1999, Iran awarded Total a 46.75% stake to develop the offshore Balal field. Bow Valley Energy and ENI are also invested in the field, a reported total of $300 million. (Energy Information Agency, Department of Energy, August 2006)

• Note: In 2000 Elf Aquitaine merged with Total Fina to form TotalFinaElf, which changed its name to Total in 2003.  The investments made prior to 2000 were done separately by the two companies but are now under the control of the merged corporation.

 

 

Royal Dutch Shell (Dutch)

• In November 1999, Shell signed an agreement with the National Iranian Oil Company (NIOC) to develop two offshore oil fields in the Persian Gulf, Soroush and Nowruz.  Shell’s investment of more than $800 million was pivotal in raising Iran’s oil output by 190,000 barrels per day – about an 8 % increase in total Iranian output.  In mid-2005 Shell handed over the two developed fields to Iran after development difficulties forced the company to halt production.  Shell however remained involved in the marketing of the oil from the fields.   (Congressional Research Service, August 2006)

• Shell is also involved in negotiations with the Iranian government and China’s Sinopec regarding a 20% equity stake in the Yadavaran oil field in southern Iran. (International Oil Daily, November 7, 2006)

• In January 2007, Shell, in partnership with Repsol, signed a preliminary deal to develop sections 13 and 14 of the South Pars field. The project would involve building a plant capable of liquefying 8-million tons of natural gas a year for shipment to Europe and elsewhere.  According to the Iranians, the deal is valued at $10 billion.  (The Associated Press, January 30, 2007)

• In January 2001 Enterprise Oil took a 20% stake in phases 6, 7, and 8 of the South Pars natural gas field.  After Shell purchased Enterprise it withdrew from the development.

 

 

Repsol (Spain)

• In October 2004, Repsol signed a $27 million deal with the National Iranian Oil Company (NIOC) for exploration operations in Forouz and Iran-Mehr oil blocs in southern Iran.  (Iranian Student News Agency, October 15, 2004)

• In October 2001, Repsol in conjunction with OMV, ENAP (through its subsidiary Sipetrol) signed an agreement to explore the Mehr oil block.  In February 2007 the block was declared commercial with with recoverable reserves of 150 million barrels  (Platts Oilgram News, February 2, 2007)

• In January 2007, Repsol, in partnership with Shell, signed a preliminary deal to develop sections 13 and 14 of the South Pars field. The project would involve building a plant capable of liquefying 8-million tons of natural gas a year for shipment to Europe and elsewhere.  According to the Iranians, the deal is valued at $10 billion. (The Associated Press, January 30, 2007)

 

 

ENI (Italy)

• In February 1999 ENI, in conjunction with Total began operating in Iran’s Doroud oil field with an investment of $1 billion. (Energy Information Agency, Department of Energy, August 2006)

• In April 1999, Iran awarded ENI a 38.25% stake to develop the offshore Balal field.  In April 1999, Iran awarded Bow Valley a 15% stake to develop the offshore Balal field.  Total and ENI are also invested in the field a reported total of $300 million.  (Energy Information Agency, Department of Energy, August 2006)

• In July 2000, ENI invested in Phase 4 and 5 of the South Pars natural gas project in a deal estimated to be worth $1.9 billion.  (Energy Information Agency, Department of Energy, August 2006)
   
• In June 2001 ENI signed a $1 billion contract to explore Iran’s Darkhovin oil field  (Energy Information Agency, Department of Energy, August 2006)

INPEX (Japan)

• In January 2003, JAPEX and INPEX participated in the development project of the Soroosh and Nowrooz fields through joint investment in JJI S&N, which holds a 20% working interest in the project. (INPEX Website, retrieved March 19, 2007)

 

• In 2004 INPEX signed an agreement to develop the Azadegan oil field.  Under the agreement INPEX held a 75% stake inn the $2 billion project and the other 25% share was held by the National Iranian Oil Company (NIOC).  In October 2006 fears that the deal may lead to U.S. sanctions caused the deal to be slashed with INPEX now holding only a 10% stake.  (Congressional Research Service, August 2006 & International Oil Daily, October 10, 2006)

Oil and Natural Gas Company, ONGC, Indian Oil Corporation (IOC) and Oil India Ltd (India)

• ONGC is involved in the exploration of the Farsi Block.  In 2002, a consortium of Indian companies signed a contract to carry out exploration in the Farsi Block. The consortium consists of ONGC-Videsh with 40%, IOC with 40% and OIL with 20% of the equity. The contract commits $27 million in exploration obligation. Oil discovery in excess of 500 million barrels is expected.  In November 2006, it was reported the consortium sruck oil at three offshore exploration wells in the Farsi block (UPI, November 15, 2006 & The Telegraph (Calcutta) December 27, 2002) 

§       In October 2004, ONGC along with SINOPEC negotiated a long term deal with the National Iranian Oil Company for the development of Yadavaran, Iran’s biggest onshore oil field. ONGC is likely to receive a 29% stake and SINOPEC a 51 % stake.  A related deal would allow ONGC to develop part of the South Pars natural gas field.  If implemented in full the deals could be worth over $100 billion.  The deal is still awaiting final approval. (Congressional Research Service, October 2006 and International Oil Daily, February 5, 2007)

Petronas (Malaysia)

• In September 1997, Petronas signed a $2 billion contract along with Gazprom and Total to develop phases 2 and 3 of the South Pars natural gas field.  Petronas has since expanded its involvement to other portions of the South Pars fields.  (Congressional Research Service, August 2006)

 

 

Petrobras (Brazil)

§       In July 2004, Petrobras signed a $34 million deal to drill in the Iranian part of the Caspian Sea.  In 2003, the National Iranian Oil Company granted the company a license to explore a 3,200-square-mile area of the Persian Gulf.  (Energy Information Agency, Department of Energy, August 2006)

 

 

LG (South Korea)

• In September 2002, Iran signed a $1.6 billion development contract with South Korea’s LG Construction to development phases 9 and 10 of the South Pars gas fields.  (Energy Information Agency, Department of Energy, August 2006)

 

 

Norsk Hydro (Norway)

• In April 2000 Norsk Hydro signed an exploration service contract for Iran’s Anaran block with the National Iranian Oil Company. In 2005, Hydro was announced as the winner of the tender for the Khorramabad exploration and development contract.  In 2006, the $107 million contract was approved and signed with Hydro-Zagross, a subsidiary of Norway’s Norsk Hydro ASA (NHY).  (Congressional Research Service, August 2006)

 

 

Statoil (Norway)

• In October 2002 Statoil signed an agreement with Iran to develop phases 6, 7, & 8 of South Pars gas field.  The company reportedly plans to invest as much as $300 million in the $2.6 billion South Pars gas field. (Energy Information Agency, Department of Energy, August 2006)

• Statoil is also working with the National Iranian Oil Company on improved oil recovery from 3 fields in Iran – Ahwaz, Marun and Bibi Hakimeh. (Statoil 2003 Annual Report)
   
• In January 2007 China National Petroleum Corp (CNPC) began talks with Statoil to join a $3.6 billion project to develop the South Pars natural gas field. (Dow Jones Newswires, January 12, 2007)

China National Petroleum Corp (China) – Sheer Energy (Canada)

§       In May 2002 Sheer Energy signed an $80 million to develop the Masjid-e-Soleyman (MIS)oil field.  The China National Petroleum Corp (CNPC) then purchased the subsidiary of Sheer working on MIS. CNPC began work on the field in June 2005. (Energy Information Agency, Department of Energy, August 2006)

 

§       In January 2007 the China National Petroleum Corp (CNPC), the country’s biggest oil producer, signed a memorandum of understanding to invest $3.6 billion to develop a portion of the South Pars natural gas field. The MoU with Iran’s oil ministry pledges CNPC to spend an estimated $1.8 billion on exploration and production in the SP14 gas block in the field and an additional $1.8 billion on building a liquefied natural gas plant. CNPC is in talks with Norway’s Statoil ASA (STL.OS) about joining the SP14 project. (Dow Jones Newswires, January 12, 2007)

Bow Valley Iran Ltd. (Canada)

• In April 1999, Iran awarded Bow Valley a 15 % stake to develop the offshore Balal field.  Total and ENI are also invested in the field a reported total of $300 million. (Congressional Research Service, August 2006)

Gazprom (Russia)

• In September 1997, Gazprom signed a $2 billion contract along with Petronas and Total to develop phases 2 and 3 of the South Pars natural gas field.  (Congressional Research Service, August 2006)

 

 

Lukoil (Russia)

• Lukoil and Norsk Hydro are involved in the exploration of the Anaran onshore project.  Lukoil owns 25% of the geological exploration project. (Hydro Press Release, September 29, 2003)

• On February 18, 2006, Lukoil and the National Iranian Oil Company singed a contract for the joint geophysical and geological study of Moghan and Lali prospective blocks.  (Lukoil Press Release, January 18, 2007)

 

 

GVA Consultants (Sweden)

• In March 2001, GVA Consultants, a Swedish company, signed a Caspian Sea transit contract worth an estimated $225 million. GVA was later acquired by Halliburton in November 2001. In March 2005, Halliburton said it would no longer take on new business in Iran.  (Congressional Research Service, August 2006)

 

 

OMV (Austria)

• In October 2001, Repsol in conjunction with OMV, ENAP (through its subsidiary Sipetrol) signed an agreement to explore the Mehr oil block.  In February 2007 the block was declared commercial with with recoverable reserves of 150 million barrels  (Platts Oilgram News, February 2, 2007)

• In June 2005 OMV reportedly signed a joint venture agreement for the planned ‚Nabucco‘ pipeline project which would transport natural gas from the Caspian Sea region to Middle – and West Europe. Other companies reportedly involved in the deal include Hungary’s MOL, Romania’s Transgaz, Turkey’s Botas and Bulgaria’s Bulgargaz.  The construction cost of the pipeline is estimated at 4.6 billion euros. (The Financial Times, June 27, 2006)

 

 

ENAP (Chile)

• In October 2001, Repsol in conjunction with OMV, ENAP (through its subsidiary Sipetrol) signed an agreement to explore the Mehr oil block.  In February 2007 the block was declared commercial with with recoverable reserves of 150 million barrels  In May 2006, the state-owned oil company announced it would sell its 33 % stake in the Mehr oil block due to the rising risk of doing business in Iran.  (Platts Oilgram News, February 2, 2007 and Global Insight, May 12, 2006)

 

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Some Companies Signing Energy Agreements
with Iran

Agreements NOT finalized

 

 

China Petroleum & Chemical Corp, Sinopec (China)

§       In January 2001, Sinopec was awarded exploration of Zavareh-Kashan, an onshore oil block in central Iran.  The deal worth a reported $13 million has shown little results. (Iranian Republic News Agency, January 13, 2001 and Global Insight, August 21, 2006)

 

§       In October 2004, SINOPEC along with India’s ONGCn egotiated a long term deal with the National Iranian Oil Company for the development of Yadavaran, Iran’s biggest onshore oil field. SINOPEC is to receive a 51 % stake and ONGC 21%.  If implemented in full the deal could be worth tens of billions of dollars.  The deal is still awaiting final approval. (Congressional Research Service, October 2006 and International Oil Daily, February 5, 2007)

 

§       In June 2006 the Iran Oil Exploration Services Company (OESC) and China Petroleum & Chemical Corp. (SNP), or Sinopec, signed an exploration and development contract for the Islamic Republic’s onshore Garmsar oil block. The estimated cost of exploring the block is $20 million, but could rise to $38 million if there are indications of recoverable crude reserves. (Mehr News Agency, June 21, 2006)

 

 

China National Offshore Oil Corp (China)

§       In December 2006, China National Offshore Oil Corp (CNOOC) signed a $16 billion agreement to develop the Northern Pars gas field and build liquefied natural gas facilities over a period of 8 years. It will take a year to finalize the deal. (International Oil Daily, December 21, 2006)

 

 

Essar Oil (India)

§       In September 2006, Essar reached a multi-sector deal with Iran under which Essar proposed building a 300,000 b/d refinery in southern Iran, as well as steel and power plants in exchange for an upstream deal and LNG supply.  The two sides are still working on the details of the deal. (International Oil Daily, February 5, 2007

 

§       Essar is also in talks with the National Iranian Oil Company about a 49% stake in the Azadegan oil field. (Asia Pulse, March 19, 2007)

 

 

Liquefied Natural Gas Ltd, LNGL (Australia)

• In November 2006, Australia’s LNGL and the National Iranian Oil Company signed an agreement for the development of the Selkh and Southern Gesho 2 gas fields.  The capitol investments in the deal are expected to exceed $1.5 billion.  LNGL will have rights to export the LNG in coordination with NIOC. Financial close is expected during the fourth quarter of 2007 (Platts Oilgram News, November 9, 2006)