State-owned Iran Offshore Oil Company (IOOC) has signed a $6bn deal with the local Sepehr Energy, to develop the Lavan gas field, as well as the construction of a petrochemical complex at Lavan Island in the Gulf.

IOOC managing director Mahmoud Zirakchianzadeh says that its parent company, state-owned National Iranian Oil Company (NIOC) plans to raise the annual gas output in the Gulf by 10 billion cubic feet through the development of gas fields such as Farzad, Forouz, Kish and Lavan.

The Lavan gas field has estimated gas reserves of approximately 9.5 trillion cubic meters of which 6.2 trillion is recoverable, according to the semi-official Shana news agency. Approximately 80 per cent of the field is located in offshore, with 20 percent onshore sector at Lavan Island.

NIOC dropped Polish Oil and Gas Company (PGNiG) from the development of the field, citing the firm’s lack of investment despite signing an initial deal in mid-2009 (MEED 22:12:11).