Minister of Petroleum Bijan Zangeneh said on Tuesday that production of oil from Caspian Sea is not a priority.
Speaking in the Majlis (parliament) public meeting, he said that oil recovery from the Caspian Sea is on the agenda but it needs special equipments and experience to extract oil in deep waters of this region.
Production of oil in the Caspian Sea is not a priority for Iran but the Sardar Jangal gas field has been introduced to investors within the framework of Iran Petroleum Contracts (IPC), Zangeneh underlined.
The Sardar-e Jangal gas field is an Iranian natural gas field that was discovered in 2012. Located in 700m water depth it began production in 2012 and produces natural gas and condensates. The total proven reserves of the Sardar-e Jangal gas field, as specified by the Iranian Ministry of Petroleum, are around 50 trillion cubic feet (1,430×109m3), however, estimates from the operator later placed reserves at 5 trillion cubic feet, and production is slated to be around 2.45 billion cubic feet/day (70×106m3).
Elsewhere in his remarks, petroleum minister said that new edition of Iran Petroleum Contracts have been communicated to the government for approval after long discussions with critics.
He said that Indians have time till Shahrivar (August-September) to finalize negotiations on Farzad B oil field.
First unit of the Persian Gulf Star refinery will come on stream in this Iranian calendar year (started March 20, 2016), Zangeneh added.