KUALA LUMPUR: PETROLIAM Nasional Bhd (Petronas) has signed a Memorandum of Understanding (MoU) with National Iranian Oil Company (NIOC) to collaborate in a field study in South Azadegan and Cheshmeh Khosh.
Under the MoU, a study would be conducted for a period of six months, and was expected to be concluded in the second quarter of new year, said Petronas in a statement yesterday.
The signing took place at NIOC’s Central Headquarters in Teheran yesterday.
Petronas was represented by executive vice-president and chief executive officer of Upstream Datuk Mohd Anuar Taib while NIOC was represented by its deputy managing director in engineering and development Dr Gholamreza Manouchehri.
“We would like to thank NIOC for the opportunity as this MoU is an important milestone for both Petronas and NIOC.
“Iran has provided an opportunity for growth in the Middle East beyond our current footprint in Iraq,” said Anuar.
“We will bring our capabilities and expertise in oil and gas to Iran and look forward to a successful partnership with NIOC,” he added.
Meanwhile, speaking to the media after a luncheon yesterday, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said when the US imposed economic sanctions against Iran and extended them in 1995 to firms dealing with the Iranian government, Petronas left the country.
Now that the sanctions have been lifted, it would be a good opportunity for the national oil corporation to re-enter the country’s oil industry, he said.
“They were with me when I was there in October... I met the Iran Petroleum Minister Bijan Namdar Zanganeh and other ministers, and I can only say that Petronas is highly respected there and they want Petronas to go back there,” he said.
According to news reports in Iran, the country was anxious to attract investments in a bid to update its aging oil and gas infrastructure and increase production to meet rising local demand and to help fund government spending.
“In recent months, NIOC has sealed several MoUs with Austria’s OMV and Gazprom of Russia, aiming to increase the recovery factor of Cheshmeh Khosh in the west of Iran, MEHR news agency was quoted as saying.
Zanganeh said Iran welcomed Malaysian firms, Petronas in particular, since they had a long history with the country’s oil industry.
“Prior to sanction years, the bulk of cooperation between NIOC and Malaysia pertained to sales and exports of crude oil as Iran was deploying a daily average of 50 to 60 thousand barrels of crude oil to Malaysia under spot contracts,” Mustapa said.
One of NIOC’s most significant deals with Petronas was the South Pars Phase 11 development project which was supposed to be accomplished in collaboration with France’s Total and Repsol S.A. of Spain. The agreement, however, became null and void due to the international sanctions against Iran.
The MoU is has also been said to rival France’s Total, Britain’s Royal Dutch Shell and Japan’s Inpex Corporation’s presence in Iran.