Petrovietnam to begin Iranian oil exploration work

28 July 2008
Vietnam's state-run Petrovietnam Exploration Production Corporation is to start work on the exploration and development of the Danan oil block in Iran on 1 August, as part of a four-year deal agreed with National Iranian Oil Company (NIOC).

The deal includes the study and analysis of seismic data, along with the drilling of three wells and is the first contract to start as part of Tehran’s development of 17 separate oil and gas blocks.

NIOC says the agreements have been signed using the modified buy-back formula, which allows energy firms to spread costs which can be later recouped through the sale of products over a 25-year period.

NIOC has signed deals with Italy’s Edison International and Croatia’s INA in March and April respectively, for development of the Moghan 2 and Dayyer blocks respectively (MEED 8:4:08).

A fourth block, Laleh, is poised to be awarded to Iranian Offshore Engineering & Construction and an international energy company by mid-August.

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