Pertamina files proposals of developing oil blocks in Iran

Petromindo|Boim

PT Pertamina has formally presented its proposals to develop two oil and gas blocks in Iran, Ab-Teymour and Mansouri, which each is estimated to have a reserve of more than 1.5 billion barrels.

The company announced in its press release on Tuesday that its Upstream Director Syamsu Alam presented the proposals to Deputy on Engineering and Development of the National Iranian Oil Company (NIOC), Gholamreza Manoucherhri, in a ceremony witnessed by Economic Coordinating Minister Darmin Nasution, Iranian Oil Minister Bijan Namzar Zanganeh, Indonesia?s Deputy Minister of Energy and Mineral Resources Arcandra Tahar and Indonesia?s Ambassador to Iran, Octavino Alimudin, during their working visit to Iran on Monday.

Syamsu Alam said that the proposals are a follow-up step to the memorandum of understanding (MoU) signed by the two companies on August 8 last year (2016). Based on the MoU, Pertamina was given a chance to file proposals for development of Ab-Teymour and Mansouri by the end of February this year.

?During the last four months, we?ve conducted a technical evaluation on the oil-gas blocks. Now, we?ve finished our proposals and filed them to NIOC. These proposals will be the basis for us to negotiate further on the operation of the two big fields,? said Syamsu Alam.

He said that based on its technical evaluation, each of the oil-gas assets, which are located in Bangestan, southern part of Iran, has a potential reserve of more than 1.5 billion with potential production from each is at 200,000 barrels per day.

Iran has the world?s fourth largest proven reserve of oil at 157 billion barrels or 9.3 percent of the world?s total proven reserve. Iran also has the world?s largest proven gas reserve at 1,200 TCF or 18.2 percent of the world?s total reserve of gas.

After European countries and the US lifted the trade sanctions against the country two years ago, Iran had planned to increase production from the current 3.4 million barrels per day to 4.7 million barrels per day during the next five years. As part of efforts to realize the target, Iran has invited foreign oil and gas companies to invest in Iran through tenders and bilateral cooperation.

?We appreciate all efforts pursued by the Indonesian government to open bilateral cooperation with Iran that had led to the chance given to Pertamina to file the proposals. It?s been in line with the vision and mission of Pertamina to aggressively develop upstream business abroad as part of efforts to strengthen Indonesia?s energy resilience,? he said.

Editing by Benget Besalicto ST