The Italian oil company (ENI) has entered into joint venture for the development of Iran's Balal Oil Field according to a 38.25-percent interest, together with Total Fina Elf (46.75 percent operator), and Bow Valley of Canada, (15 percent), Iran's official news agency (IRNA) reported.
According to the agency, the project's total cost is estimated at $300 million and production is expected to reach 40.000 barrels of oil per day, as the field is estimated to have reserves of 100 million barrels of oil.
IRNA said, the contract is of the buy-back type, which provides for the recovery of investments and remuneration through a portion of the field's production. ENI production entitlement will be approximately 9,000 barrels of oil per day.
Operations are already underway, and production is planned to start by the end of 2002 in the new field, which is located off-shore of Iran in the Arab Gulf under 70 meters of water -- Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
