Iran prepares Laleh oil block award

07 August 2008
National Iranian Oil Company (NIOC) is expected to award the Laleh oil block to Iranian Offshore Engineering & Construction and Indonesia’s state-run Pertamina in mid-August, according to industry analysts, as part of Tehran's development of 17 separate oil and gas blocks.

The agreement is expected to be signed using the modified buy-back formula, which allows energy firms to spread costs that can be later recouped through the sale of products over a 25-year period.

NIOC signed deals with Italy's Edison International and Croatia's INA earlier this year for the development of the Moghan 2 and Dayyer blocks respectively (MEED 8:4:08).

Last month, Vietnam's state-run Petrovietnam Exploration Production Corporation won an exploration and development deal on the Danan oil block, as part of a four-year deal agreed with NIOC.

Iran formally offered 17 onshore and offshore oil blocks for development to international oil companies in February, 2007.

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