Iran to sign $20bn oil, gas contracts

TEHRAN, Dec. 1 (MNA) -- An Iranian oil official said the Islamic Republic will soon sign multi-billion-dollar contracts for the development of its joint oil and gas fields. Managing Director of the National Iranian Oil Company (NIOC) Ahmad Ghalebani said, “New contracts for developing the joint fields will worth over USD 20 billion,” the official website of Iran's Oil Ministry, Shana, reported. The Iranian official also said that a decision would be reached regarding 20 oil fields by the end of the current Iranian year (March 20), adding that the contract for the development of Lavan, Mansouri and Forouz B will be signed in coming weeks. Yesterday, NIOC and Energy Persia Company signed a contract worth USD 600 million for the development of Yaran oil field in west Iran. According to Ghalebani, the field will yield 10,000-15,000 barrels per day (bpd) of crude oil in early production phase. The 65 square kilometer-oilfield will become officially operational in 24 months and will produce up to 25,000 bpd of crude oil thereafter. Iran shares oil and gas fields with most of its neighbors in the Persian Gulf region including Qatar, Oman, Kuwait, Saudi Arabia and Iraq. As the second major oil exporter of the Organization of Petroleum Exporting Countries (OPEC), Iran holds the world's second-largest crude reserves after Saudi Arabia and the second-largest gas reserves after Russia.