Iran to Develop Three Oil Fields With Local Group, Press TV Says

Iran signed a contract valued at $800 million with an Iranian group to develop the Kouhmond, Boushkan and Kouhkaki oil fields, the state-run Press TV news channel reported, citing Deputy Oil Minister Ahmad Qalebani.

The agreement was signed yesterday between Petroleum Engineering and Development Co., an affiliate of the National Iranian Oil Co., and Inter Naft Gas Prom Pars Co., a Tehran- based company with partners in Ukraine which aims to promote the economic development of both countries, according to its website.

The Kouhmond heavy oil field, 80 kilometers (49 miles) east of the port city of Bushehr, in southern Iran, has reserves estimated at 1 billion barrels, Press TV said. Kouhkaki is northeast of Kouhmond, close to the city of Khormoj, and contains 780 million barrels of light crude; Boushkan is 100 kilometers north of Bushehr and holds reserves estimated at 340 million barrels, according to the report.

The three fields will be developed in two phases and produce 11,000 barrels of crude oil a day after completion of the first phase and 22,000 after the second, Press TV said.

To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net