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Italy's Eni Takes 28.35% Stake in Iran's Balal Oil Project
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|Author||Topic: Italy's Eni Takes 28.35% Stake in Iran's Balal Oil Project|
posted February 15, 2001 09:57
LONDON, Feb 14 Asia Pulse - Italy's ENI has acquired a 38.25 per cent stake in project to repair and upgrade Iran's Balal offshore oil field, extending its cooperation with the operation's majority shareholder TotalFinaElf.
A TotalFinaElf official in Paris was quoted by Middle East Economic Digest as saying that the French company was looking to reduce its original 85 per cent share in the field because it was too high. The 15 per cent stake of Canada's Bow Valley Energy is unaffected.
The Balal project, estimated to be worth US$300 million, was awarded in early 1999 but has been delayed by a dispute over the costs of rehabilitating a derelict 98 km pipeline from the field to facilities on Lavan Island.
TotalFinaElf says that the work is now on schedule. The first development well will start to be drilled on January 18. Anglo-Norwegian Kvaerner has the detailed engineering contract and the platforms and other facilities are being built by a local firm in partnership with Sembawang of Singapore.
Production at Balal is expected to reach a peak of 40,000 barrels per day. It is understood that ENI, which is already working with Total on the Dorood offshore field, will be entitled to 9,000 bpd under Iran's buy-back formula.
All times are PT (US)
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