Pertamina, Iran cooperate on oil fields development

Jakarta (ANTARA News) - The oil and gas state-owned company, Pertamina, and the Iranian National Iranian Oil Company (NIOC) have signed a memorandum of understanding for a pre-study to develop two gigantic oil fields in Iran.

The President Director of Pertamina, Dwi Soetjipto, in a press release received by ANTARA here on Monday, stated that the oil fields are Ab-Teymour and Mansouri (Bangestan-Asmari).

The two onshore oil fields are estimated to have a reserve of more than five billion barrels.

The MoU was signed by Dwi Soetjipto and the NIOC Managing Director Ali Kardor. The ceremony was witnessed by the Indonesian Ambassador Extraordinary and Plenipotentiary accredited to the Islamic Republic of Iran, Republic of Turkmenistan, Octavino Alimudin in Tehran, Iran on Monday.

In addition to the upstream business opportunities, the two companies also agreed to explore other such vistas.

Based on the memorandum of understanding, Pertamina will have six months to conduct the study and submit the preliminary proposals to develop the two fields.

As part of the effort to prepare the proposal, NIOC will disclose information and cooperate with the Pertamina team through a joint working group.

Pertamina expects that mpre such MoUs will continue to be signed for concrete cooperation in the form of contract agreements for the two oil fields.

Currently, Iran is preparing the Iranian Petroleum Contract which will mark the new oil and gas era in the country.

"Iran is one of Pertaminas priority countries. We are serious to invest in upstream sectors that will support Iran in improving its oil and gas production. On the other hand, this step is line with the companys efforts to support the national energy security," Dwi said.

Besides upstream businesses, Pertamina had earlier agreed on LPG supply. It is planned that the LPG shipping from Iran to Indonesia will be undertaken in September 2016.

"There are many opportunities for Pertamina and NIOC to work together, such as procurement of crude oil and condensate, LNG refinery management, petrochemicals, oil drilling and service," Dwi added.(*)