Iran to push ahead with MoU signings


TEHRAN, December 27, 2016 – Iran is likely double the number of memorandums of understanding with international oil companies in the coming months, Deputy Managing Director of National Iranian Oil Company (NIOC) Gholam-Reza Manouchehri has said.


In a report on the Ministry of Petroleum’s news portal Shana on Monday, Manouchehri said Iran looks to capitalise on low production costs in attracting foreign entities. “For the time being, the cost of oil and gas production in Iran is timely low compared to that in many world countries and this has doubled the interest in investment in the country’s oil and gas industries by the international companies,” he was quoted as saying.

“The NIOC has thus far signed MoUs for study and cooperation in development of oil and gas fields with 12 international companies like British-Dutch Royal Dutch Shell, French Total, Japanese Inpex, Russian Gazprom Neft. 10 to 12 more MoUs are to be signed with other big international oil industry upstream companies soon,” Manouchehri also said.

For example, on Sunday, NIOC announced that phase two of development at the Yadavaran field would be offered in an international tender. It was unclear how the tender would affect an MoU earlier signed with Shell. On December 7, 2016, the Ministry of Petroleum, NIOC and Shell signed the MoU for the development of the Yadavaran field, along with the South Azadegan and Kish fields.