BELARUS NEWS AND ANALYSIS

DATE:

20/05/2007

Iran,Belarus to Sign Jofeir Oil Field Devt Deal-Iran Official

TEHRAN -(Dow Jones)- The National Iranian Oil Company, NIOC, and the Belarussian energy firm Belorusneft will sign a contract for the development of the onshore Jofeir oil field by the end of next month, said an Iranian oil official Sunday.

The oil field in the oil-rich province of Khuzestan, southwest Iran, is located in the Iran-Iraq border region. Based on initial estimates, the field will produce around 30,000 barrels a day of crude when commissioned.

Earlier this month the NIOC approved a general development plan on the field submitted by Belorusneft in association with Belneftakhim, another Belarussian oil concern.

"We've asked the Belarussian company to finalize negotiation on the Jofeir oil field's development plan by the end of June so its contract would be signed on that date, and the company has accepted the proposal...," the Oil Ministry's information network quoted Mehdi Bazargan, the managing director of the Oil Engineering and Development Company, as saying. The initial agreement on the oil field was signed last year.

Belorusneft will have to secure the NIOC's approval if it decides to bring in another investor on the field, Bazargan said. There have been no details on the financial aspects of the venture other than it will be developed on a buyback basis as called for by the NIOC.

That means Belorusneft would not take an equity stake in the field but would recoup its investment and profit by receiving part of the project's output.

The announcement by Iran in regard to the date on which the contract would be signed was to coincide with an official two-day visit by Iran's President Mahmoud Ahmadinejad to Belarus to enhance trade and energy exchanges with the former Soviet state.

Iran has resorted to emerging countries to develop its oil and gas sectors, particularly following its efforts to gain access to nuclear technology in the wake of Washington's campaign to restrict the flow of capital and technology to the Islamic state's oil.

Source:

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070520%5cACQDJON200705200801DOWJONESDJONLINE000084.htm&

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