Iran’s Ministry of Petroleum gave Industrial Development & Renovation Organization of Iran (IDRO) the green light for the development of the Susangerd oil field together with a yet unnamed international company.
Earlier, in May 2017, the Ministry of Petroleum granted IDRO the rights to conduct oil exploration in the area. IDRO is keeping the identity of its foreign partner a secret, but does state that it is a competent global firm. The oil field development agreement will be signed in the near future, according to IDRO.
The Susangerd oil field has been discovered in 2009, just 7.5 miles south-east of its namesake town in the province of Khuzestan. The estimated reserves of the field are over 8.83 billion barrels of crude oil. The required investments are within an $800-900 million range.
Iran’s oil minister Bijan Zanganeh had mentioned before that European and Asian companies are actively involved in talks regarding their involvement in new oil and gas projects in Iran. Iran itself is also interested in attracting significant investments into its energy sector, as the country is looking to make up for the revenues lost while under trade sanctions. Iran requires about $200 billion to bring its oil and gas industry up to speed.
On July 3, Iran signed its first Iranian Petroleum Contract (IPC), a new type of oil production and trade agreement, which is aimed at optimizing cooperation between Iran and its global partners. The contact, which oversees the development of the 11th phase of the major South Pars natural gas field in the Persian Gulf, has been signed between the government of Iran and a global consortium consisting of Total (France, 50.1%), China National Petroleum Corporation (30%), and Petropars (Iran, 19.9%).