Thursday, March 13, 2008

Iran, Vietnam ink $115m oil deal

Tehran Times Economic Desk

TEHRAN, Mar. 12 (MNA) – National Iranian Oil Company (NIOC) and PetroVietnam Exploration Production Corporation (PVET) signed a contract on oil exploration and development of Danan oilfield Wednesday.

Danan oilfield measures over 5,400 sq. km. in area and is located in Ilam Province, west of Iran.

The Vietnamese company is to carry out the 115-million-dollar contract in four years that includes study and analysis of seismography data with drilling at least three wells.

This is the second contract for exploration and development of 17 oil and gas blocks in Iran for which a tender was held last year, PIN reported.

The deal has been signed in line with the policy of attracting giant international oil companies for investment in the upstream oil sector of the country.

On the sidelines of the signing ceremony, the NIOC managing director said Iran has planned for boosting its oil output by 70,000 bpd.

Seifollah Jashnsaz added for the time being Iran produces 4,180,000 barrels of oil per day.