OSC involvement in Iran started
in late 1995 when discussions were initiated
by Total Sirri for the potential provision of
logistics services for the Sirri A & E project.
This project had been initially awarded to Conoco
who were precluded from commencing the project
due to the US sanctions on Iran.
For the purpose of the following,
OSC is used broadly to cover the involvement
of its Iranian joint venture, Iranian Oilfield
Services Company (IOSC)
and this company's predecessor company, Qeshm
Marine Oilwells Services Company (QOSC).
One of the key objectives in establishing our
Iranian joint venture was to maximise Iranian
content through training of Iranian personnel
and investment in infrastructure in Iran to
support the various buy-back projects. This
is an on-going process and great progress has
been made in this respect.
Our involvement in the following projects demonstrates
our commitment to the support of the buy-backs.
Total Sirri A & E
The original contract between Total and the
Iranian Government was signed in 1995.
OSC tendered for the Logistics Base Contract
late in 1995 in competition with several other
local companies. This tender was for the provision
of logistics services for the delineation
phase of the project with an anticipated
contract period of one year during which time
2 or 3 delineation wells were to be drilled.
OSC's bid was successful and the contract was
signed in February 1996 and the provision of
services began at the same time. These services
were the typical offshore supply base facilities
in Jebel Ali and included warehousing, base
offices, outside storage with pipe racks, jetty
facilities, stevedoring including base handling
equipment and personnel. Other elements were
added to the contract on an ongoing basis and
OSC was responsible for all of the materials
imported into the Jebel Ali facilities for the
delineation wells project.
Following the completion of the delineation
project, Total Sirri tendered for the development
project in early 1997 and again OSC was successful
in the bidding process and the development work
commenced in July 1997. The scope of services
was similar to those for the delineation wells
and the actual contract should normally have
expired in July 2000 but was extended for various
reasons until early 2001. Total Sirri drilled
40 development wells over the 3½ year
period using OSC's Jebel Ali facilities as a
base with only minor HS&E issues with our
contracts having been completed to Total's satisfaction.
In addition to Logistics & Base Services,
OSC also participated in the provision of 185/8"
casing, H²S services and facilitated the
contract for Casing and Tubing Running Services.
Total South Pars II/III
The original tender documents for the two delineation
wells were issued by Total South Pars in March
1998 and OSC bid through its Iranian joint venture,
QOSC and was awarded the contract in July 1998
for a 10-12 month duration. A key stipulation
of the contract was that it must be operated
from within Iran itself thus OSC/QOSC established
its presence on Kish Island to support the Total
South Pars project and imported the necessary,
certified rolling stock and handling equipment
from Jebel Ali to undertake the project. The
Jebel Ali facilities continued to be utilised
as strategic support for the Kish Island facilities
and the appraisal wells were completed reasonably
on schedule with no major HS&E issues.
Late in 1999, OSC/QOSC/IOSC was invited to
tender for the development project for Total
South Pars II/III and a comprehensive bid was
furnished once again featuring Kish Island supported
by Jebel Ali. The scope of services was similar
to Total Sirri and for the appraisal wells operation.
Whilst we were unsuccessful with our bid, Total
South Pars selected a Kish based company, we
have continued to provide quality services from
Jebel Ali to support the drilling campaign.
In the context of the various South Pars projects
OSC/IOSC is committed to the use of Assaluyeh
as a base support location and is further willing
to invest in the necessary infrastructure there
as it is firmly believed that Assaluyeh is exactly
the correct location to provide onshore support
for the offshore drilling programmes.
Shell Soroosh/Nowrooz
OSC/IOSC began its involvement with Shell for
its offshore Soroosh/Nowrooz project with discussions
as early as the beginning of 1999 when the concept
of using the Ports and Shipping Organisation
(PSO) facilities was truly in its infancy. Challenged
by the prospect of finding a suitable location
to support the drilling campaign for Soroosh/Nowrooz
(the fields being located in the northern most
sector of the Gulf), OSC undertook a physical
review of the possible locations that might
be able to offer the appropriate facilities
including Bushehr (too congested), Kish Island
(too far away), Assaluyeh (under developed),
Kharg Island (potentially too sensitive and
therefore concluded to be too difficult) and
Bandar Imam Khomeini (BIK). BIK was selected
due to the existing infrastructure and the pragmatic
management. OSC/IOSC signed a 10 year agreement
with PSO for quayside, outside storage and warehouse/office
facilities. One needs to bear in mind that BIK
has never supported an oil and gas project previously
but the concept of OSC/IOSC adding its logistics
expertise to the existing PSO facilities was
developed and it was thought to be a very interesting
proposed solution to the support base for Soroosh/Nowrooz.
Various discussions and presentations were
made to Shell personnel throughout 1999 and
these culminated in Shell Iran Offshore Ltd
(SIOL) giving the contract to IOSC for the Provision
of Logistics Base Services in July 2000. The
base at BIK is now a fully operational oilfields
logistics base and is staffed almost exclusively
by Iranians most of whom have received on the
job training by OSC. The scope of IOSC's contract
includes the typical logistics base services,
waste management services, container management
services and customs clearance services.
IOSC is operating in BIK to Shell's exacting
HS&E requirements and much progress continues
to be made in this area. One element of this
is the investment being made in BIK for incineration
of waste from the rig and the base which should
account for a good deal of the waste generated.
IOSC manages the waste on a 'cradle to grave'
basis.
A fairly unique feature of IOSC's organisation
in BIK is that one of the rotational base managers
is a Shell employee effectively seconded to
IOSC for the contract duration.
Iranian content, being a key issue in the buyback
projects, is very high in the Soroosh/Nowrooz
contract due to the facilities and personnel
and currently stands at 85% which is particularly
impressive.
The drilling portion of the contract finished
in August 2003 and thereafter IOSC has handled
support for the production phase as an extension
to the original contract.
TotalFinElf - Balal
OSC/QOSC was invited to tender for Logistics
Base Infrastructure and Management Services
in September 1999 to Elf Petroleum Iran. This
was before the merger of TotalFina and Elf.
Our tender submission presented Elf with the
choice of Kish Island, Lavan Island or Jebel
Ali.
Elf had experienced many delays in the project
primarily due to contract difficulties and engineering
projects and the fact that the merger between
TotalFina and Elf was ongoing certainly did
not help the process.
However, we were notified very late in 2000
that we had been successful with our bid and
that the logistics for Balal would be handled
by IOSC through the Jebel Ali facilities. Once
again the scope of services is typically as
described earlier for Total Sirri.
Elf Balal intends to drill two exploratory
wells and 10 development wells over the course
of the next three years having commenced early
in 2001.
TotalFinElf
- Dorood
IOSC tendered the Handling/Lifting/Transportation
Services to TotalFinaElf for its Dorood project
in May 2001 together with a tender for Agency
Services or the same project. The Dorood project
involves drilling an offshore well south of
Kharg Island and drilling 27 wells onshore on
Kharg Island itself.
The offshore programme should last ±
nine months whereas the onshore programme will
continue for 2½ years.
IOSC has been successful with its tender and
will provide the logistics services from Bushehr
for offshore and from Kharg Island in support
of the onshore drilling programme.
Mobilisation for Kharg/Bushehr commenced late
in June 2001.
This project is expected to continue until
the end of 2005 at the current rate of progress
and IOSC handles all oilfield logistics on the
island for Total and provides water generation
through the use of its reverse osmosis system
amd also transports water as approprioate with
its three water tanker/trailers. Support is
also provided by IOSC for Total's drilling contractors
to satisfy mobile crane requirements.
South Pars IV/V
ENI/Agip has been awarded the South Pars IV/V
buyback project which includes the drilling
of two appraisal wells between July 2001 and
December 2001 and following a 6 month analysis
of the results will go back to drill 24 offshore
wells over a 30 month - 36 month period.
OSC has been awarded the contract for Provision
of Onshore Base Services at Jebel Ali in support
of the appraisal project and provide support
as required from Kish Island.
South Pars VI/VII/VIII
Petropars together with Enterprise Oil have
been awarded the South Pars VI/VII/VIII project
and drilling will commence in July 2001 on the
first of the three appraisal wells. After evaluation
it is anticipated that a further 27 development
wells offshore will be drilled over a three
year period commencing in Summer 2002.
IOSC has been awarded the base services contract
from Jebel Ali and will also provide support
for the appraisal wells from Kish Island.
Since shell acquired Enterprise Oil and subsequently
declined interest in taking over the contractual
commitments of Enterprise Oil, Statoil has signed
the agreement and is now operating the South
Pars VI/VII/VIII project from Kish island. Their
drilling campaign commenced in November/December
2003 and is expected to run for just over two
years which should result in completion of the
project by December 2005.
OSC and IOSC are both shareholder companies
in Petropars Oilfield Services Company (POSCO)
which handles all Statoil's logistics services
on Kish island. These services are fully supported
by OSC/IOSC and IOSC also handles the stevedoring
elements for the oil and gas projects for Kish
island authorities.
Anaran
Norsk Hydro (Saga Petroleum Iran) has been
awarded the exploration project in Iran in an
area close to the city of Dehluran. This is
an onshore project comprising 5 exploration
wells planned to commence early October 2001
with an anticipated duration of 165 days per
well for the drilling operation plus testing
as applicable. The drilling rig will be moved
between different rig sites in the area within
the Anaran block.
IOSC has been awarded the contract for provision
logistic, customs clearance and forwarding services
from her base in Bandar Imam Khomeini (BIK).
Bandar Imam Khomeini fully supports the Anaran
project both for logistics and workshop services.
MEHR (OMV Iran)
OMV Iran is responsible as operator on behalf
of the Mehr JOA and as contractor to NIOC Exploration
for the exploration for, and appraisal of, hydrocarbons
in the onshore Mehr license in Western Iran,
north-west of Ahwaz, OMV Iran commenced its
exploration activities in the latter part of
2003 and its intention is to drill 5 exploration
& appraisal wells over a two year period.
IOSC is perfoming the contract Freight Forwarding
/ Custom Clearance and Logistics Base Services
from its base at Bandar Imam Khomeini with support
on and as required basis from Jebel Ali through
OSC. These services are provided on a call-out
basis for OMV Iran which substantially reduces
the logistics costs by precluding the need for
a permenently manned OMV logistics presence
in the country.
Key elements of the services are HSE and Quality
Assuarance both of which are fully integrated
into IOSC's activities.
Other potential projects
Currently the following buyback projects have
been awarded (or are about to be awarded) to
foreign operators and IOSC might reasonably
expect to have some involvement in the foreseeable
future.
- Azadegun
- Bangestan
- Farsi
- Nosrat / Farzan Iranian Oil Company
- Cheshmeh - Khosh Cepsa
- Darkhovin / Darquain ENI (Agip
)
There are potentially many more buyback projects
to be awarded shortly including the huge Bangestan
project (onshore) comprising the fields of Ahwaz,
Ab-Teymur and Mansouri.
Azadegan presently negotiated with Inpex Corporation.
Continue to review our web site for further
information or contact us for complete information
on the current status of the buyback projects.