HOUSTON, Feb. 6�ENI SPA said Tuesday it has taken a 38.25% interest in a joint venture that will spend $300 million to develop Balal oil field off Iran.
The field, which has 100 million bbl of reserves, will produce an estimated 40,000 b/d. It is in 70 m of water in the Persian Gulf (OGJ Online, Oct. 19, 2000).
Other partners in the project are TotalFinaElf SA, the operator with 46.75% interest, and Bow Valley Energy Ltd. of Canada with 15%. Work is underway and production will begin by late 2002.
Under terms of the buy-back contract, the companies will recover their investment in the form of a portion of the field's production. ENI estimated it would get about 90,000 b/d of oil.
ENI is operator, with a 60% participation, in South Pars gas field off Iran. It also has 45% of Dorood offshore oil field in partnership with TotalFinaElf, which has 55%.
ENI said its participation in the Balal project will benefit from its activities in Dorood "in that it will ensure logistical and operational synergies."
The company also said it is negotiating with National Iranian Oil Company to operate other oil fields.
