Iran invites bids for Saleh gas field

09 July 2008
Iranian Offshore Oil Company (IOOC) has invited companies to bid for the Saleh gas field in the Strait of Hormuz, following prequalification earlier this year.

The engineering, procurement, construction and drilling deal covers the generation of a master development plan, downstream gas plants and drilling of exploration and production wells.

The package is unique as it does not have to be carried out on a traditional buyback basis, with domestic developers or foreign companies with Iranian partners able to bid.

Under Iran’s favoured buyback deals, firms only recoup their costs and a pre-agreed rate of profit once the field has been handed back to the state-run firm, assuming the field produces sufficient supplies.

IOOC says the project is expected to take 12 months.

Earlier this year, the state-run firm tendered the Hormuz and Tasan oil and gas fields while companies also recently submitted prequalifying documents for the giant Lavan gas field (MEED 14:01:08).

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