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Foreign Affairs

NIOC, Toyo ink MoU in oil

Tehran, July 17, IRNA National Iranian Oil Company (NIOC) and the Japanese firm Toyo signed a Memorandum of Understanding (MoU) for overhauling and production out of Salman gas field.

The MoU was signed in a ceremony attended by Deputy Head of the NIOC for the Engineering and Development Affairs Gholam-Reza Manouchehri, Director of the Energy Business Unit at Toyo Engineering Corporation Hiroshi Sato and Petropars Managing Director Hamid Akbari.

The deal is the first of its kind to be signed after implementation of the Joint Comprehensive Plan of Action (JCPOA).

The final agreement is expected to be signed in the form of Heads of Agreement (HoA) subsequently.

Petropars, affiliated to the NIOC, is assigned to finance the research phase, and the Japanese Toyo will provide the financial resources of the project's implementation.

This is the first offshore project of Toyo in Iran, that has been in force in the country since 1980.

Salman oil field in Persian Gulf is one of the old shared fields that is estimated to have five million barrels of oil. Some 70 percent of the oil field is in Iran and the rest is in United Arab Emirates.

The field in located in Hormozgan Province and has gas and oil reserves.

Source: Islamic Republic News Agency

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