The CEO of the National Iranian Oil Company(NIOC) Mohsen KhojastehMehr announced that the company has signed a contract for the development, production, and increase of oil production from the South Pars oil layer.

He noted that the contract which is worth $500 million was signed with a reputable foreign company as well as the Iranian Offshore Engineering and Construction Company.

KhojastehMehr added that the contract includes, for the first time, using new technologies for horizontal drilling and water injection to enhance production.

The NIOC CEO elaborated that: “The situation of the South Pars oil layers is such that we cannot exploit them by conventional drilling that we have in the country, therefore, this is one of the special advantages of this contract that in addition to foreign investment, technology transfer will also be made possible.”

“The contract for the development of the second phase of the South Pars oil layer has been negotiated and finalized for 20 years within the framework of the new upstream contract model. Accordingly, the developer is committed to supply the financial means for development of the project,” according to the statement.