Iran lawmaker says Arab countries 'steal' from shared oil, gas fields:
report
London (Platts)--
22Dec2011/829 am EST/1329 GMT
A prominent member of Iran's parliament has accused Arab countries of
colluding to exploit more than equitable volumes of oil and gas from
fields shared with Iran, the official IRNA news agency reported
Wednesday.
"The Arabs have created an unwritten accord to use more of [the reserves
in] shared oil and gas fields than Iran," Emad Hosseini, spokesman for
the parliament's energy committee, was quoted as saying.
Hosseini specifically named Saudi Arabia, saying the kingdom was taking
advantage of Iran through "illegal" exploitation of the disputed Arash
gas field in the northern Persian Gulf.
Earlier in 2011, Saudi Arabia and Kuwait reached an agreement on joint
exploitation of the giant field containing an estimated 20 Tcf of gas,
which they call Dorra. In early December, the two Arab states announced
they would accelerate plans to develop the field because both countries
needed the gas.
Iran at the same time unilaterally announced plans to drill in the
field, but has yet to do so.
Iran says that roughly 5% of the gas field lies beneath its
territorial waters and has called for all three states to share the
reserves.
Saudi Arabia and Kuwait reject this.
"Unfortunately, we have problems in using all shared oil and gas fields
with Arabs, and the Arash gas field is only one example," Hosseini said.
He said that Gulf Arab states sharing maritime borders with Iran
collaborated on exploiting shared fields at Iran's expense.
"Sometimes Saudi Arabia helps Kuwait to extract more oil and gas in the
shared fields. Sometimes, Kuwait helps the United Arab Emirates and
sometimes the United Arab Emirates helps Oman," Hosseini said.
Depending on local geology, it is sometimes possible for oil and gas
reserves to migrate from one end of a reservoir to the other if the pool
is exploited unevenly. However, this does not happen with every field,
including some in the Gulf with complex geology that keeps local pockets
of oil and gas in place.
The enormous shared offshore gas field known as North Field in Qatar and
South Pars in Iran is understood by Arab and western geologists to be
one such field. But Iran, which has so far been unable to conduct its
own detailed reservoir studies of shared Persian Gulf fields, is
unconvinced.
"Qatar exploits many times more than Iran from the shared gas field and
has started its exploitation several years earlier than Iran. There
should be a way to solve this problem," Hosseini said.
Qatar has placed a moratorium on further development of North Field
reserves pending the completion of a reservoir study at an unspecified
time. The emirate's industry and energy minister, Mohammed al-Sada, said
in early December that he had no current plan to lift the moratorium.
Hosseini said Iran's oil sector has problems with management and
authority and also faces challenges to investment. He cited these
problems as reasons for Iran failing to keep pace with its Arab
neighbors in exploiting Persian Gulf oil and gas reserves.
Iran shares at least 15 oil and gas fields with Arab states including
Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Some of those
fields straddle or lie close to disputed maritime border.
Forouzan (also called Marjan), Farzad A and B (also called Farsi A and B
or Al-Hasabeh) are shared with Saudi Arabia.
Reshadat-Resalat is located very close to Iran's maritime border with
Qatar.
The Hengam oil field is shared with Oman.
Tehran has estimated that development of the shared fields will require
$67 billion of investment over five years.
In late November, Iranian oil minister Rostam Ghasemi unveiled plans to
award one contract every one to two weeks for the development of shared
fields. He said the contracts would go to domestic contractors and
investors.
However, no such contracts have yet been signed.
Hosseini's criticisms are a sign of mounting tension between Iran and
some Gulf Arab states, particularly Saudi Arabia, which share Western
governments' misgivings about Tehran's nuclear aspirations.
The Iranian parliamentary energy spokesman's comments come within days
of a summit of the six Arab states comprising the Gulf Co-operative
Council at which Saudi Arabia's King Abdullah called for Tehran to stop
"meddling" in GCC affairs.
--Aresu Eqbali,
newsdesk@platts.com
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