France/Canada consortium associating Elf and Bow Valley signs contract to develop Balal oil field in Iran

abarrelfullabarrelfull wrote on 09 May 2012 08:58

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April 4, 1999

A consortium initiated by Bow Valley Energy Ltd of Canada and associating Elf Petroleum Iran, a subsidiary of Elf Aquitaine of France, has signed a contract with the National Iranian Oil Company for the development of the offshore Balal oil field. The field is located 100 kilometers southwest of Lavan Island in the Persian Gulf in a water depth of 70 meters and has recoverable reserves estimated at 100 million barrels of good quality oil.

Elf Petroleum Iran, with 85% interest, will be the operator for the consortium in charge of development and the start-up of production. The overall cost of the project is estimated at $300 million. First oil from Balal of around 40,000 barrels a day is planned for 2001.

The contract is of a buy-back nature, which provides for the consortium to be reimbursed and paid in the form of crude oil from the field. The term of the contract is about six years.
In line with NIOC’s oil field development plan, this contract reflects Elf and Bow Valley strategies of increasing operations in Middle East.

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