Page 40 - Plastics News March 2018

Business news

OVL signs pact for developing Susangerd oilfield in Iran

NGC Videsh Ltd, the overseas arm of state-owned Oil with the likes of global giants like Shell, France’s Total,
Oand Natural Gas Corp (ONGC), has signed a pact with Petronas of Malaysia and Russia’s Gazprom. It is also
Iran’s IDRO Oil to jointly bid for a USD 1 billion contract reworking a USD 6.2 billion cost it had estimated for
for development of Susangerd oilfield in southern Iran. developing the Farzad-B gas field in the Persian Gulf. OVL
The onland Susangerd field in the Khuzestan province is is doing recalculations to win rights to development the
one of the newest finds, which Iran hopes will produce field it had discovered a decade back.
around 30,000 barrels per day of oil in two development
phases.OVL signed a Memorandum of Understanding (MoU)
to collaborate with IDRO Oil, which is a subsidiary of state- Indian Oil Corporation to invest
run Iranian Development and Renovation Organisation, Rs 25,000 crore in Gujarat
in developing Susangerd field, official sources said. IDRO
Oil had last month Refinery
signed a similar
pact with Russia’s he Indian Oil Corporation (IOC) will invest nearly Rs
Zarubezhneft T25,000 crore at itsGujarat Refinery over the next
to jointly bid five years. While Rs 1,315 crore will be invested in BS
for a contract IV fuel project, Rs 3,569 crore will be pumped in BS
to develop the VI fuel, Rs 15,034 crore will
Susangerd field. go for capacity expansion
The Iranian firm is from processing 13.7 million
looking at forming a consortium to make a case with the metric tonnes per annum
state-owned National Iranian Oil Co (NIOC) for a contract (MMTA) to 18 MMTA, Rs 4,517
for Susangerd, according to an Islamic Republic News crore for Oxo-alcohol and Rs
Agency (IRNA) report citing IDRO CEO Nasrollah Zarei. IDRO 345 crore for revamping Liner
Oil is one of 17 eligible contractors that have received Benzene Alkyl (LAB) plant.
the Iranian oil ministry’s nod to be a lead partner in joint Gujarat Refinery executive
ventures with international to work in the country’s energy director (ED), Sudhir Kumar
sector. In May last year, it signed an agreement with NIOC, said that the government
which is the owner of all oil and gas in Iran, to study three has given them a deadline of April 2020 for supplying
fields including Susangerd. BS VI fuel.
“We are investing in the refinery to upgrade the fuel
In December, IDRO Oil signed up Austrian consulting
company HOT Engineering to prepare a master development supply but we will also keep flexibility and adjust
plan for Susangerd. HOT Engineering Company will provide according to the demand.” The Gujarat Refinery has
consultancy services, technical support and a master also planned to sign a MOU with the Vadodara Municipal
development plan. Corporation (VMC) for buying the treated water from
its sewage treatment plant (STP). “We plan to buy the
Another Iranian contractor, Pasargad Energy, has also treated water from the Chhani STP. Currently they
studied Susangerd. Zarei expected USD 900 million would release the water in Mahi River. We can buy the water
be required for the development of the oilfield.
and use it for industrial purpose. We may need more
Susangerd, located 45-kilometres west of the city of Ahvaz water after the expansion plans. This will help us in
i Khuzestan, is estimated to hold more than 5 billion saving water and also benefit the environment. Other
barrels of in-place oil reserves discovered in 2009. Of industries too can follow the same model,” Kumar said.
these, 500 million barrels are recoverable. The VMC will have to lay a 9-km pipeline to supply the

Separately, OVL is also bidding for development rights of water to the refinery.
Iran’s giant South Azadegan Oilfield in direct competition

Plastics News March 2018 40