TOTAL AGREES TO DEVELOP IRAN'S SIRRI FIELDS

France's Total has signed a contract with National Iranian Oil Co. (NIOC) covering development of Sirri A and E oil fields off Iran. It marks the first participation by a western company in an upstream Iranian project since the Iranian revolution of 1978-79. The project previously was awarded to Conoco Inc., but that was voided by an executive order from President Clinton imposing a unilateral embargo on U.S. trade with Iran that took effect June 6 (OGJ, May 9, p. 26). Royal Dutch/Shell and Total had been in the running for the project, but Shell pulled out this month (OGJ, July 1 0, P. 35).

TOTAL'S RESPONSIBILITIES

Total is to conduct development studies and be responsible for field delineation, development, and production start-up. It also is to provide $600 million in funding the development project will require the next 5 years. Total accepted the contract under the same terms Conoco obtained. Production is to begin within 3 years, at which time Total will receive as compensation a share of production corresponding to its outlays for the project. NIOC will take over as operator when production starts. Combined production from the two fields is targeted at 120,000 b/d of oil and an undisclosed volume of associated natural gas that Total will sell, probably to Dubai. Productive capacity is pegged at 70,000 b/d of oil from each field and combined gas productive capacity of 140 bcf/year. Plans call for linking the fields by pipeline with Sirri Island, near Iran's border with Dubai, where NIOC operates Sirri C and D oil fields and a storage and transshipment terminal. Total currently produces more than 280,000 b/d of Middle East oil, mainly in nearby Dubai fields. Copyright 1995 Oil & Gas Journal. All Rights Reserved.