Austria’s OMV to develop Bande Karkhe field

TEHRAN, May 31 (MNA) – An oil official said Austrian integrated oil and gas company, OMV, will resume activities to develop Bande Karkhe oilfield in the near future.

Alireza Zamani, Executive Manager of the project to develop Bande Karkheh oilfield, recalled OMV, the international, integrated oil and gas company based in Vienna, had discovered and begun production at the Iranian field adding “the operation was carried out through an exploration and development contract between National Iranian Oil Company (NIOC) and OMV.”

“With imposition of international sanctions against Iran, the Austrian firm put an end to its developmental projects in Bande Karkhe field,” stated the official noting that, due to the halt, a new contract was signed between Petroleum Engineering and Development Company (PEDEC) and SATA Investment Company for an output level of 20,000 barrels in the first phase.

Given the removal of sanctions and the obtained resolutions in post-JCPOA era, OMV expressed readiness to return to the Iranian field and make investments for its development and inked a Memorandum of Understanding (MoU) with MATN company.

OMV, which had signed a preliminary agreement in January to study Bande Karkheh Oilfield, will take charge of the field's development under a new style of contracts, known as Iran Petroleum Contract (IPC), said Zamani, who supervises the field's development.

“The feasibility of Bande Karkheh field has been proven by OMV and the Austrian company will develop the field in a contract with the NIOC,” he underlined.

He went on to state that OMV had submitted a proposal to develop Bande Karkheh following an agreement in January to conduct a survey on the reservoir. It has also discussed the terms of the proposal in meetings with NIOC officials.

A meeting is schduled to take place between OMV executives and the NIOC in Tehran on Wednesday to mull over procedures and technicalities of the proposal.

The contract for Bande Karkheh project is expected to be finalized within 6 to 8 months. The new oil contracts will be used to develop the field.

The main reservoirs in Bande Karkheh are Ilam and Sarvak formations. The Ilam layer is estimated to contain two billion barrels of oil in-place and Sarvak is estimated to hold 1.9 billion barrels in-place.

OMV is also in negotiations with the NIOC to sign a long-term oil export contract. It purchased 1 million barrels of Iranian crude in September as its first cargo since 2012.


News Code 125680


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