Iran to grant development of 3 heavy crude oil fields to Ukraine

TEHRAN, Dec. 26 (MNA) – Iran will soon sign a deal with a Ukrainian company to develop three heavy crude oil fields with an estimated value of 1 billion dollars. The Petroleum Engineering and Development Company (PEDC), (a subsidiary of the National Iranian Oil Company), will sign the contracts for development of Mond, Boushgan, and Kuh-e Kaki oil fields with Ukraine’s Gazprom Pars Company. The deal follows Iran's recent deal with the Russian Tartarstan's Tatneft Group for the development of the Zagheh oil field. The precise investment by the Ukrainian company for the development of the three oil fields is not determined yet; however, the initial estimate is nearly $1 billion. According to a comprehensive plan drawn up by the Oil Ministry, two phases have been predicted for the development of these three heavy crude oil fields. The first phase begins with a 5000 bpd production and reaches to 10,000 to 12,000 bpd. In the second phase around 25,000 barrels will be extracted from these fields. Formerly, Iran had negotiated with a Chinese-Australian consortium for the development of the three oil fields. So far, 18 heavy and extra-heavy oil fields have been discovered in Iran. The Ferdowsi oil field with reserves of 31 billion barrels of heavy crude is considered one of Iran’s largest oil fields.