Pertamina signs MoU to develop Iran?s giant field

State owned oil and gas firm PT Pertamina (Persero) announced on Monday that it has signed a Memorandum of Understanding (MoU) with National Iranian Oil Company (NIOC) allowing it to carry out preliminary study on two giant fields in Iran, namely Ab-Teymor and Mansouri (Bangestan-Asmari)

The MoU was signed by Pertamina?s President Director Dwi Soetjipto and NIOC?s Managing Director Ali Kardor in a ceremony witnessed by Indonesian Ambassador for Iran and Turkmenistan Octaviano Alimudin.

Aside from upstream sector, both firms also agreed to explore cooperation in other business sectors.

Under the MoU, Pertamina is given six months to carry out study and then submit preliminary proposal to develop the two onshore fields, which are estimated to contain 5 billion barrels of oil. In preparing the proposal, NIOC will provide all needed information and cooperate with Pertamina?s team in a joint-working group.

Pertamina expects the signing of the MoU will be later followed by a contract signing. Iran is preparing the so-called Iranian Petroleum Contract, which will mark a new milestone for the development of oil and gas resources in the country.

?Iran is a priority country for Pertamina. We are serious in investing in (Iran?s) upstream sector which aside from assisting Iran in increasing its production, will also support our national energy resilience,? Dwi said.

Aside from business in the upstream sector, Pertamina has also set up a cooperation with NIOC in LPG supply. The first delivery of LPG from Iran to Indonesia is scheduled for September 2016.

?Certainly, there are a lot of opportunities for both firms to expand cooperation to crude and condensate provision, LNG plant operation, petrochemicals, drilling, oil services and others,? he said.

Editing by Johannes Simbolon