Iran signs Caspian exploration deal with local firm
TEHRAN, Aug 31 (Reuters) - Iran on Tuesday signed contracts valued
tentatively at a total $50 million with the local Petro Iran Development
Company (PEDCO) for oil and gas exploration in the Caspian Sea, the official
Iranian news agency IRNA reported.
It quoted Deputy Oil Minister Ali Majedi as saying the first of two
contracts covered exploration in the Alborz-1, Alborz-2, Alborz-3, and
Alborz-4 fields, while the second covered exploration in the Babol and
Majedi said the contracts, signed by the National Iranian Oil Company
(NIOC) and PEDCO, would later also cover development and exploitation.
"There is inter-connection in the agreement between the exploration,
development and exploitation phases," said Majedi, who is the top
official in charge of Iran 's Caspian oil and gas resources.
"The cost of these contracts is forecast at $50 million at the
exploration stage," Majedi said. "The costs will be different
in the development and exploitation phases and will be determined at that
Iran 's efforts at developing its energy resources in the Caspian Sea
have included a pipeline project to transport oil through the Islamic
The United States, which has mounted an economic and political campaign
to isolate Iran , is fiercely opposed to any Caspian route through the
Iran has also had disputes with Azerbaijan and other Caspian Sea states
over the exploitation of the sea's rich resources.
Tehran says the five littoral states should agree jointly on exploitation
projects. Most of the other states have said every country should be free
to develop its own area of the Caspian .