TotalFinaElf - Agip JV lets Doroud subcontract
France's TotalFinaElf SA and Italy's Agip SPA let a $10 million subcontract related to the $1 billion redevelopment of Doroud oil field off Iran.
France's TotalFinaElf SA and Italy's Agip SPA let a $10 million subcontract related to the $1 billion redevelopment of Doroud oil field off Iran. Under terms of the contract, Stolt Offshore (formerly Stolt Comex Seaway SA) and Maritime Industries Services of the United Arab Emirates will provide a production platform and pipeline facilities.
Units Elf Petroleum Iran and Agip Doroud BV won the 10-year, $540 million buy-back contract from National Iranian Oil Co. (NIOC) last year. Elf is operator and holds a 55% interest; Agip holds 45%.
Giant Doroud field lies mostly off Kharg Island, although a portion of it is onshore. The goal is to increase production by reinjecting into Doroud's Yamama and Manifa reservoirs gas that is now produced and flared from nearby fields.
Redevelopment work is expected to boost reserves to 1.5 billion bbl from 600 million bbl. Elf and Agip will use water and gas injection and additional drilling to increase Doroud production from the current 145,000 b/d to 220,000 b/d by 2003.
It is expected that 5,000 b/d of condensate will be produced with the gas developed as a result of this project.
The Elf-Agip combine will be repaid for their investment with a share of production. Additional revenues will come from both increased oil exports and condensate sales.
Contracts for the main onshore facilities, which will include extensive water and gas injection facilities and will be worth an estimated $500 million, have not been let.