Eni is stepping up its presence in Iran. In fact, the italian oil company has entered into the joint venture for the development of the Balal oil field according to a 38.25 percent interest, together with TotalFinaElf ( 46.75 percent operator), and Bow Valley of Canada, ( 15 percent ).
The field holds reserves estimated at 100 million barrels of oil and is located offshore Iran, in the Persian Gulf, in 70 meters of water.
The project's total cost is estimated at US $ 300 million and production is expected to reach 40,000 barrels of oil per day.
The contract is of the buy back type, which provides for the recovery of investments and remuneration through a portion of the field's production. Eni production entitlement will be approximately 9,000 barrels of oil per day.
Operations are already under way, and production is planned to start by the end of 2002.
Eni is already active in Iran as operator with a 60 percent participating interest in the project for the development of the offshore South Pars Gas Field (Phases 4&5), in partnership with Iran's Petropars.
Moreover, it is present with a 45 percent stake in the development of the offshore Dorood oil field in partnership with TotalFinaElf, which holds 55 percent.
Eni's partecipation in the Balal project allows the partnership with TotalFinaElf, already operating in Dorood, to be extended to this field, thereby ensuring synergies and optimizing operations.
Eni is still engaged in negotiations with National Iranian Oil Company for the development of other oil fields in its capacity as operator.
Source:E.N.I
© 2001 Mena Report (www.menareport.com)
