| TOTAL has announced the start-up of production on the Sirri A field, located in Iranian waters, in the eastern part of the Persian Gulf, at a water depth of 65 meters. It will produce 7,000 barrels per day (b/d) of crude oil from three wells in the start-up phase, with a production objective of 20,000 b/d from eleven wells.
The neighboring Sirri E field will begin production in 1999, with output expected to plateau at 100,000 b/d. As the two fields come on stream, the National Iranian Oil Company (NIOC) will gradually take over as operator, but TOTAL will still be involved in the operations until its investment has been fully recovered.
Sirri A and E fields are being developed under a buy-back contract, signed with NIOC in July 1995, whose partners are TOTAL (70%) and a subsidiary of the Malaysian national company Petronas (30%). According to the contract, TOTAL is in charge of developing the two fields while both partners will finance the project. In exchange, for a period of five years after first production, NIOC will supply TOTAL and Petronas with oil deliveries designed to cover their investment.
Elsewhere in Iran, TOTAL is also operator with a 40% interest, alongside Gazprom (30%) and a subsidiary of Petronas (30%), in the phases 2 and 3 development of the giant South Pars gas field, located in the western part of the Persian Gulf at a water depth of 70 meters. Production is scheduled to begin in mid-2001. |
