Sun Nov 27, 2016 10:54AM
Iran has signed a basic agreement with Schlumberger over the development of three fields in its oil-rich Khouzestan province. (Photo by Shana)
Iran has signed a basic agreement with Schlumberger over the development of three fields in its oil-rich Khouzestan province. (Photo by Shana)

Iran says it has signed a memorandum of understanding (MOU) with Schlumberger – the world's largest oil field services company - over the development of several southern oil fields. 

The MOU was signed between Schlumberger and the National Iranian South Oil Company (NISOC) – a subsidiary of the National Iranian Oil Company (NIOC) – which is mostly in charge of the developments of prospects in Iran’s oil-rich Khouzestan province. 

Accordingly, the French company would be required to study the formations of Shadegan, Parsi and Rag-e Sefid oil fields in Khouzestan. 

The projects would be carried out within the framework of Iran’s new generation of oil contracts, Shana news agency reported.  

Schlumberger would be the second giant energy corporation to win a deal in Iran’s oil industry.  Earlier this month, Total signed a contract to develop a major gas project in Iran’s South Pars gas field. Total and Schlumberger now appear to have provided France with a strong foothold in Iran’s oil industry given that both companies are headquartered in Paris. 

Italy’s Eni also announced late last week that it is looking into Iran’s post-sanctions investment prospects, but emphasized that it had to first wait for Iran’s outstanding payments over its previous investments in the country’s oil industry to be settled.  

The southwestern province of Khouzestan which borders Iraq is generally considered as the heartland of Iran’s oil industry.  A province in which the world’s first commercial oil field was brought on stream back in the 19th century today hosts over 45 major oil fields and is responsible for around 80 percent of Iran’s total crude production.