Sputnik - The head of Lukoil, Russia's oil-producing giant, Vagit Alekperov said he expects to sign contracts with Iran to develop the country's oil fields in 3-4 months. These are the oil fields of Mansuri and Shanguleh, the development of which the National Iranian Oil Company (NIOC) announced a tender in the summer of 2017.




Lukoil has presented Iran with�its plan for�the development of�the Mansuri project. But on�par with�that Iran is also taking into�consideration the plan submitted by�the Indonesian firm Pertamina, which has also applied for�the tender to�develop this field.

What are the chances of�Lukoil winning the tender? What will these contracts be like: unilateral or with�the creation of�consortium, and what benefit could the Russian oil giant receive from�these projects? Sputnik discussed the issue with�Omid Shukri Kalehsar, an Iranian independent expert on�energy security from�Washington.

According to�his estimates,�Lukoil�is the favorite to�win the tender, but�the potential threat of�the breakdown of�all oil contracts is coming from�the possibility of�US withdrawal from�the Iran nuclear deal.
�Last August, Lukoil presented Iran with�a project to�develop the Mansuri oil field with�the goal that in�March 2018 the parties would sign the final version of�the agreement,� Kalehsar explained.


According to�the expert, during�the meeting, Alekperov expressed interest in�the development of�the Iranian energy sector and noted the priority of�investments in�the development of�oil fields in�the country. Given the total volumes of�Iranian oil, Alekperov said that the company would not be able to�work on�all Iranian oil fields, only concentrating on�two of�them�� the Mansuri and the Abe Teimur fields. Both oil fields are located in�Khuzestan province in�west-central Iran.

According to�preliminary calculations, the minimum amount of�oil in�the Abe Teimur field is 15 billion barrels. One-day production from�the Bangestan oil well amounts to�60,000 barrels.
�Iran is expected to�find many foreign investors for�the development of�its oil and gas fields. At present, contracts have been signed for�the development of�the 11th phase of�South Pars (The South Pars gas field is the largest in�the world, with�reserves of�14 trillion cubic meters of�gas and 18 billion barrels of�gas condensate, which is 8% of�the world's total reserves) with�France's Total and China's CNPC, as�well as�a contract for�the re-development of�the Aban and Paydare Qarb oil fields with�the Russian company Zarubezhneft. If a contract is signed to�develop the Mansuri and Shanguleh fields, it will be the first serious contract with�foreign companies this year,� Kalehsar said.


According to�Kalehsar, Iran needs foreign investment to�search and increase the production potential of�its oil and gas fields, since�the production capacity of�Iranian oil wells annually falls by�8%.

�Russian companies are actively working in�Iraq's energy industry. Gazprom is seeking to�expand its presence in�the Mediterranean region and invest in�the oil and gas industry of�this region, take part in�gas production and transportation in�this region,� according to�the expert.

The�Iranian National Oil�Company has reported that after�taking into�consideration the previously submitted proposals for�the development of�two of�its fields, it has been decided to�accept the Indonesian firm Pertamina�s proposal. Although no official reports have been received from�Iran's Ministry of�Petroleum the Indonesian company recently reported that it had been provided with�80% of�the package for�the development of�the Mansuri field, while the remaining 20% belongs to�the Iranian side, accordingly, Lukoil will not participate in�the development of�this field.

As for�the Shanguleh field, Lukoil�s role is still unknown. In addition, according to�the expert, in�the event of�the US withdrawing from�the JCPOA, the issue of�the development of�the Bangestan oil well will arise. If the events develop this way, the Indonesian company will have to�decide whether to�continue its activities in�Iran under�American sanctions or to�abandon their interests in�Iran in�favor of�promoting cooperation with�the US energy sector.

�If the US does not withdraw from�the JCPOA, and the possibility of�their withdrawal has recently increased significantly due to�the changing situation in�the country, and unless new sanctions are introduced against�Iran's energy sector and those who want to�invest in�it, the role of�Russian companies in�various areas of�the oil and gas sector may increase,� Kalehsar noted.
�Do not forget that during�the sanctions, Russian companies left the oil and gas industry of�Iran. If Russian companies have projects with�US companies in�the US or joint projects with�this country, we need to�see to�what extent they will oppose pressure and sanctions against�Iran, and whether they will prefer their interests in�Iran's industry to�US markets.


The impact of�US sanctions on�Iran's energy sector, as�well as�on the participation of�Russian or Chinese companies in�this sector will be known in�the near�future,� Kalehsar concluded.