Norwegian firm welcomes Tehran IPC conference

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On December 2, 2015, Posted by , In News, With No Comments

The representative of Kvaerner ASA, Norwegian engineering and construction services company, said the wide welcome of the Tehran IPC Conference heralds a bright future for Iran’s petroleum industry.

Speaking with Shana on the sidelines of the two-day conference which was mounted by Iranian Ministry of Petroleum to introduce the terms of its new oil and gas contracts, Bjørn Arne Lundblad, the vice president of strategic business development of Kvaerner ASA, said the presence of more than 1,500 executives and representatives of international firms at the conference is an indication of their interest in Iran’s oil and gas projects.
‘The world’s oil and gas industry is now seeking new grounds for investment and Iran is a very suitable option for them,’ he said.
Lundblad said many projects have been put on table at the conference before the potential investors which require a long time for their assessment and appraisal.
He further called on the Iranian petroleum ministry to include more incentives in the new contract model to make them more appealing to the interested international energy companies.
He also voiced his company’s readiness to return in Iran after the sanction’s removal as per Tehran’s nuclear deal with world powers.
Kværner was a Norway-based engineering and construction services company that existed between 1853 and 2005. In 2004, it was amalgamated to the newly formed subsidiary of Aker ASA – Aker Kværner, which was later renamed to Aker Solutions on 3 April 2008.
Kværner re-emerged on 6 May 2011, when the EPC (engineering, procurement and construction) part of Aker Solutions took the Kværner name. The new Kværner company was listed on Oslo Stock Exchange on 8 July 2011.
Iran has offered 52 oil and gas development projects in addition to 18 exploration blocks at the Tehran IPC Conference.
The projects include 29 new and currently producing oilfields and 23 gas developments. Onshore fields make up 34 of the projects. The projects are estimated to be worth more than 30 billion dollars.
IPC is replacing buyback deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.
But under the IPC, National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.
In the wake of nuclear deal reached last July, Iran has been receiving high-ranking officials and corporate executives of major companies including from Germany, Spain, Austria, Italy, and France to discuss new cooperation ventures.
Zangeneh has said that Iran welcomes foreign investment in its energy industry, but stresses technology transfer by foreign partners in the new contracts.

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