Iran will launch a $5 billion oilfield investment package within the next two years aimed at maintaining and enhancing its crude oil production, oil minister Bijan Zanganeh said at an energy event Tuesday.
According to the ministry news service Shana, the package will be divided into $300 million projects, each taking two years to complete. Domestic firms such as the Iranian Offshore Oil Co. and the National Iranian South Oil Co. (NISOC) will finance the projects.
“We will invite only Iranian companies for financing these projects, but they may decide to join a foreign partner,” Zangeneh was quoted as saying. “The cash for developing the projects will be obtained through various methods including financing, usance, bonds, domestic financing and loans from the National Development Fund of Iran.”
The idea is to repair oil wells, drill new ones and remove production bottlenecks at certain fields, to boost Iran’s oil production while creating jobs. The plans will be carried out under the newly-devised model of oil contracts (IPC), Kallanish Energy finds.