BELARUS NEWS AND ANALYSIS

DATE:

08/05/2007

Iran approves general plan for Jofeir development

MINSK. May 8 (Interfax) - The National Oil Company of Iran has approved a general plan submitted by Belorusneft and Belneftekhim for Belarussian participation in the development of the Jofeir field in Iran, a source in Belorusneft told Interfax.

"The association submitted a general plan for the development of the Jofeir field for consideration by the Iranian side, and on May 5 the National Oil Company of Iran approved the document," the source said.

In the near future the sides plan to start talks to sign a contract for participation by the Belarussian side in the development of the Jofeir field.

Iran and Belarus signed a memorandum of understanding in the oil industry in the autumn of 2006 during a visit by a Belarussian government delegation to Iran. Belarus plans a project to organize remote oil production at Jofeir field under the memorandum.

Belorusneft Deputy General Director for geology Valery Beskopylny said Iran had suggested developing the field on buy-back terms. Under those terms the national oil company, which owns the field, would draft an economic and engineering plan. The Belarussian company acting as the general contractor would invest in the business plan in a given period and conduct exploration and drilling. "As a rule this takes about eight years," Beskopylny said. Then the general contractor either sells all of the oil to the company that ordered the work and receives a profit or receives the product as its own, thus paying for capital investment.

The Jofeir field is located in the border between Iran and Iraq. Iranian experts said it has capacity for 30,000 barrels of oil per day.

Source:

http://www.interfax.com/3/268788/news.aspx