By the OGJ Online Staff
LONDON, Apr. 25 -- European oil and gas group OMV will make its first foray into Iran.
OMV Iran Onshore Exploration GmbH signed a service contract Monday with National Iranian Oil Co. for a 4-year exploration program on the Mehr Block.
OMV plans to have 2D seismic shot over the 2,500 sq km block this year, with exploration drilling starting in 2002. The company said only two wells have been drilled on the block, both in 1967.
OMV noted that the block lies within the main producing trend of the Central Zagros fold belt. The company said it believes Mehr contains "significant remaining exploration potential."
Operatorship of Mehr, said OMV Head of E&P Gerhard Roiss, will lay the groundwork fro further expansion in this region: "This new venture is an important step in OMV's goal of establishing the Middle East as a core region for our international E&P business."