News ID: 4033448 -

Petropars, Toyo ink oil MoU

TEHRAN, Jul. 17 (MNA) – Iran’s Petropars Ltd. and Toyo Engineering Corporation of Japan have signed a cooperation agreement to modernize facilities and boost recovery factor of Salman gas field in the Persian Gulf.

The accord marks the first MoU on modernization services sealed after implementation of the Joint Comprehensive Plan of Action (JCPOA) and aims to renew facilities and increase production at Salman gas field.

The agreement was signed during a ceremony attended by Deputy Head of NIOC for Development and Engineering Affairs Gholamreza Manouchehri, Director of Energy Business Unit at Toyo Engineering Corporation Hiroshi Sato as well as Hamid Akbari, Managing Director of Peropars company which engages in the exploration, exploitation, and production of oil and gas in upstream projects in Iran.

With the signing of the Memorandum of Understanding (MoU), framework of the final contract will be signed within Heads of Agreement (HOA).

Under the terms of the deal, Iran’s Petropars is committed to finance the study phase of the project while Toyo of Japan will undertake financing of its executive phase.

Toyo Engineering Corporation of Japan, which operates internationally in the field of procurement and construction of hydrocarbon and petrochemical plants, was established in 1961 and the company has since been involved in research, development, design, engineering, equipment, construction, testing and technical guidance in chemical, petrochemical, oil refining, natural gas, electricity, nuclear, advanced production systems, distribution, medical equipment, biotechnology and environment facilities in all stages of construction, supply and development, as well as in sales of engineering services.

The company has been active in Iran since the 1980s though all its activities have been conducted on dryland of Iran, and the new agreement will mark the first offshore activity of the Japanese company in the country.

Located 144 kilometers south of Lavan, Salman Field has one of the largest offshore installations in the Persian Gulf and it is a common field with Abudhabi of the UAE. It has near 50 oil wells and 10 water injector, the process capacity is 220,000 barrels of oil, transferred to Lavan Island by a 22-inch offshore pipeline.

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