July 25, 2008

Iran to sign LNG and gas drilling contracts

PIN reported that 2 contracts for development of Iran’s LNG and drilling of Kish gas field will be signed.

PIN quoted Iranian Petroleum Engineering & Development Company PR as saying that the contract for the development of Kish gas field will be signed between the officials of IPEDC and National Iranian Drilling Company.

Kish field covers 48 trillion cubic feet of in place gas that it is projected to have a production capacity of 60mm to 100mm cubic meter a day. It is also planned to drill 10 wells onshore and 15 off the coast. Annual production of the first phase of Kish gas field is valued at USD 1.2 billion and for the all three phases more than USD 3.6 billion dollars in total. On this basis, the last part of Iran’s LNG project contracts will be also signed.

Referring to the last part of LNG contract, Mr Ali Kheir Andish MD of Iran LNG Company said that "We are in talks on the projects with an Asian company and 3 other foreign companies and also an Asian company has declared it is ready to invest on gas liquefaction part of the project."