Iran inks $6b gas deal with domestic firm

TEHRAN, Dec. 28 (MNA) - Iran Offshore Oil Company (IOOC) inked a $6 billion contract on Tuesday with a domestic corporation, Sepehr Energy, to develop the Lavan gas field and build a petrochemical complex in the region as well. Talking to reporters on the sidelines of the signing ceremony, IOOC managing director Mahmoud Zirakchianzadeh said the National Iranian Oil Company is planning to raise the annual gas output by 10 billion cubic feet in the Persian Gulf by developing gas fields such as Farzad, Forouz, Kish and Lavan. The Lavan gas field in the Persian Gulf has in-place gas reserves of around 9.5 trillion cubic feet. The field has the capacity to produce 750 million cubic feet of natural gas per day. The NIOC set aside the Polish Oil and Gas Company (PGNiG) from developing the Lavan gas field due to its repeated delays since four years ago. Earlier this month, NIOC managing director Ahmad Qalebani told that Iran’s oil output has decreased by average 20,000 barrels per day compared to the year before. Gas output, however, increased by 10 percent year on year, he noted. According to Iran’s fifth five-year development plan (2010-2015), the country’s gas production capacity should increase by 250 million cubic meters per day. Iran sits on the world's second largest natural gas reserves after Russia.