Indonesia’s state-owned oil company Pertamina has signed a memorandum of understanding (MoU) with National Iranian Oil Company (NIOC) to conduct joint studies over two major oil fields in the south of the country.
The oil fields that Pertamina and the NIOC will study are Mansouri and Ab Teymour which are located in Iran’s oil-rich Khouzestan province and contain an estimated total reserve of more than 5 billion barrels.
The two companies also signed a so-called “secret deal” to guarantee the confidentiality of the findings.
This is already seen as a first step by Pertamina in an ambitious plan to invest in Iran’s oil projects.
“Iran is one of Pertamina’s priorities. We’re serious about investing in Iran’s upstream oil and gas, which will help Iran to increase its oil production,” Reuters has quoted Pertamina CEO Dwi Soetjipto as saying in a statement.
Pertamina has also announced that it would import its first shipment of liquid petroleum gas (LPG) from Iran in September.
The company announced in May that it had agreed to purchase 600,000 tons of LPG from state-owned marketer National Iranian Oil Co (NIOC), Reuters added.
The company had announced in early July that it had targeted four oil projects to study in Iran and that a decision to choose two would be taken in the near future.
“There are two to four blocks that will be evaluated based on the initial study. Of the four, there are two blocks that will be our priority,” the media quoted Pertamina’s upstream director Syamsu Alam as saying at the time.
Pertamina hopes to boost production from each block by 30,000 barrels per day as part of its upstream development plans.
The company is considering a capital expenditure of $5.31 billion this year, of which 72 percent is for upstream business, the energy information provider Platts said in a report earlier.