ONGC Videsh Ltd Won Rights to Bid for Oil & Gas Development Projects in Iran

Oil field services in Iran is forecast to grow after National Iranian Oil Corp(NIOC) gave rights to many companies to bid for their oil & gas development projects

Iran: As per National Iranian Oil Corporation (NIOC), few international oil & gas companies have been given rights to bid for their oil & gas development projects in Iran. ONGC Videsh Ltd is among the 29 international oil companies from more than twelve countries that Iran has pre-qualified to bid in the upcoming tender for oil & gas. Other companies in the list are China National Petroleum corporation, Total SA of France, Russia’s Gazprom, Eni of Italy, Malaysia’s Petronas, Russia’s Lukoil, China’s CNOOC and Sinopec, Inpex of Japan, KOGAS of Korea. Companies like Wintershall from Germany, Maersk from Finland, DNO from Norway and CEPSA from Spain are new to be involved in Iran’s oil development projects. Gas that will be produced from this field can either be converted in to LNG and Shipping in cryogenic ships to India or transported through a pipeline via overland passing through Pakistan or sub-sea.

TechSci Research depicts that because of the removal of sanctions, advent of foreign players and anticipated rise in capital inflows, oilfield services market in Iran is expected to grow by 2021. Further, as a result of signing of a Joint Comprehensive Plan of Action (JCPOA) with P5+1 nations, in 2015, Iran is cutting down its nuclear enrichment activities and is focusing towards increasing its crude oil production. This in turn is expected to result in augmented demand for oilfield services during 2016-2021.

According to released report of “Iran Oilfield Services Market- By Application (On-Shore, Off-Shore), By Type, By Region Opportunities & Forecast 2021”, oilfield services market in Iran is forecast to grow at a CAGR of more than 13% during 2016-2021, on account of anticipated increase in oil & gas E&P activities. In 2015, onshore oilfield services segment accounted for a majority share in Iran’s oilfield services market; however, the offshore oilfield services segment is forecast to exhibit higher growth during 2016-2021.