Iran replaces ONGC with domestic firm in oil field
Iran has awarded the development of an offshore oil field that state—owned Oil and Natural Gas Corp (ONGC) had abandoned as commercially unviable, to a domestic company.
ONGC Videsh Ltd and its partners Indian Oil Corporation (IOC) and Oil India Ltd (OIL) had in 2009 dropped plans to develop the Binaloud oil find in the Farsi offshore block as it found one billion barrels of reserves commercially unviable.
However, Iranian Offshore Oil Company (IOOC) has found production of heavy crude oil from the field would be possible in the near future, Iran’s semi—official Mehr news agency reported.
Binaloud holds about 3.5 billion barrels of oil in place, more than three times ONGC’s estimate of 1 billion barrels of heavy crude with 14—degree API gravity, Jalal Mousavi, head of the company’s research and development bureau, was quoted as saying.
“Even though preliminary studies by ONGC evaluated the field as uneconomical, [our] studies and examinations show that with different approaches we can produce from the field,” Mousavi said.