Petrobras plans to invest USD34 million in initial oil exploration activities in Iran.
Brazil's oil major Petroleo Brasiliero (Petrobras) plans to invest $34 million in initial oil exploration activities in Iran.
Petrobras international director Nestor Cervero signed a service contract to start exploration operations in an oil block in the Persian Gulf. The block, known as Tosan, covers an area of about 3,200 square miles in the Persian Gulf.
Petrobras will invest in this project three or four years. The company signed the contract with the National Iranian Oil Company.
Last year, Petrobras won a license to explore oil in one of eight giant offshore blocks offered by the Middle Eastern nation in its first offshore licensing round. More than 23 foreign companies have voiced their readiness to handle the 16 oil exploratory blocks Iran has offered for international tender.
The 16 blocks are chosen on the basis of consumption needs and proximity to oil processing facilities. The contracts on the 16 blocks, to be done on buyback basis, are 253,000 square kilometers in area. In a reversal of past practice and in order to improve the attractiveness of the contracts, the Based on assessments by National Iranian Oil, the exploration phase of each contract, to include an oil well and seismological examination, will cost the contractor around $30 to $40 million.
