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OMV signs agreement with NIOC for South Pars gas field

OMV, Central Europe’s leading oil and gas group, has signed a Heads of Agreement with the National Iranian Oil Company (NIOC) regarding a participation in the development of an area in the South Pars gas field in the Persian Gulf, a liquefaction plant for liquefied natural gas (LNG) and a subscriber agreement for liquefied natural gas.

A coordinated and aligned project in Iran on the basis of an integrated approach would involve two of OMV’s business segments (Exploration & Production and Gas) and would complement the planed LNG regasification terminal in Croatia, in the development of which OMV participates. According to current plans, the LNG terminal in Croatia should start operating in 2011/2012 and Iran, with its substantial gas reserves, could be a source of supply. Further talks on this matter are confidential. Concrete results are not expected until the H2 of 2007.

The Iranian South Pars gas field and the North Field in Qatar is the largest known gas field in the world with estimated gas reserves of approximately 1,300 trillion cubic feet. Of this, approximately 500 trillion cubic feet are located in Iranian territory. Iran plans to develop this gas field in several phases. The OMV-NIOC MoU concerns one of these phases of development (South Pars field phase 12).

OMV signed an exploration contract (exploration of oil and gas) for the Zagros region with the National Iranian Oil Company in May 2001. Work focuses on an area covering 2,500 km, the so-called 'Mehr Block'. OMV (34% share) is the operator of the consortium, in which Repsol YPF (Spain) and Sipetrol (Chile) each hold 33%. The first exploration well was carried out successfully in January 2005. The drilling reached a depth of 4,148 meters. First production tests of the reservoir yielded an average flow rate of 1,040 bbl/day. In February 2007, the commercialize of the field was confirmed by the NIOC. A field development plan is being developed. (oilvoice.com)