Home

Iran invites new bids for Balal field development

Aug. 4, 1997

National Iranian Oil Co. has invited new bids for development in the producing Balal offshore oil field, after an approved group failed to raise financing for its $212 million plan. Middle East Economic Survey (MEES) said a venture of Canadian independent Bow Valley Ltd. and British engineering contractor Pell Frischmann broke apart after the contractor's funding plans foundered.

National Iranian Oil Co. has invited new bids for development in the producing Balal offshore oil field, after an approved group failed to raise financing for its $212 million plan.

Middle East Economic Survey (MEES) said a venture of Canadian independent Bow Valley Ltd. and British engineering contractor Pell Frischmann broke apart after the contractor's funding plans foundered.

Potential bidders include: China's state-owned China National Petroleum Corp.; Cairn Energy Plc, Edinburgh; and Monument Oil & Gas plc, London. Bow Valley also was reported to be considering a new bid with a new partner.

Current production in Balal is 40,000 b/d. U.S. Sen. Alfonse D'Amato reportedly have warned Bow Valley against pursuing an Iranian project, but the company cited Canada's opposition to U.S. sanctions against Iran.