Azadegan Tender Mid-Dec.

The Azadegan oilfield's development tender documents are expected to be ready by Dec. 15, Nozari announced on Nov. 1. Japan's INPEX now only holds a 10% share in the Azadegan project. NIOC marketing subsidiary, NaftIran InterTrade Company (NICO) is the general contractor which has selected PetroIran Development Company (PEDCO) as the sub-contractor for the field. INPEX lost its majority stake in the field, a super-giant with oil in place exceeding 26 bn barrels, last month because it could not meet NIOC terms for the development. The Japanese company faced mounting costs of steel and other materials which threatened the project's profitability

INPEX has already chosen Italian petroleum and gas group Saipem - a subsidiary of Italian energy giant ENI - along with Japanese Marubeni Corp. and an Iranian company to carry out operations. The senior oil official added that the whole tender documents are currently being assessed. "We are hopeful that all documents are completely prepared by the middle of next month".

Managing Director Nozari recently held discussions with Total on a project to develop Phase 11 of the offshore South Pars (SP) gas field and the related Pars LNG venture. The French major will develop the gas which will feed Pars LNG for export. Nozari said the Phase 11 project was awaiting a final investment decision (FID). Total is to carry out both the upstream (Phase 11) and downstream (Pars LNG) operations.

Sinopec of China is to develop Yadavaran oilfield in southern Iran. Sinopec executives were expected to arrive in Tehran this week to finalise the deal so that operations may begin shortly.

Nozari expressed hope that the development project of SP Phases 6-8 will be commissioned by the end of the current Iranian year, by March 20, 2007. These phases are being developed by PetroPars, an affiliate of NIOC, in collaboration with Staoil and sub-contractos.

The Ahvaz-Bangestan oilfield is being awarded to the Mostazafan Foundation (MF), a huge conglomerate of industries and various other businesses which has branched into the petroleum sector. Nozari said: "NIOC will award the project to the foundation and its Russian partner upon implementation [of a preliminary study] in the framework previously proposed by PEDCO". Upon acceptance by the foundation, he added, it can take up the project, given that PEDCO was currently involved in Azadegan project. In this Nozari implied that PEDCO, an affiliate of NIOC, will cede its interest in this field to the MF. In late 2004, NIOC signed a contract with PEDCO on the development of Ahvaz-Bangestan. But PEDCO's work on this was delayed.