Austrian energy group OMV wants its expansion in Iran to focus on the oilfields it has already discovered and it is prepared to invest only a limited amount there, Chief Executive Rainer Seele said on Nov. 9.
Seele, who is preparing a new strategy aimed at adapting to low oil prices and expanding production cost-efficiently, said he had no interest in a much more expensive gas project in Iran, apparently referring to the massive South Pars gas field.
"At the end of the day for us it is not simply about producing oil or gas -- we want to make profits," he said at a joint event with Gerhard Schroeder, the former German chancellor who is now an executive for the pipeline consortium Nord Stream.
OMV is jostling with many other companies seeking to do business with Iran as economic sanctions look likely to be lifted under a landmark deal reached this summer between Tehran and world powers over the Iranian nuclear programme.
While OMV was keen to move as soon as sanctions are lifted, which he expected to happen in the first or second quarter, Seele said the economic conditions had to be right, and the company would focus on the fields it knows best.
"We discovered two oilfields there," Seele said.
"We have the advantage that we are interested specifically in those fields that we discovered ourselves. We do not first have to do a seismic evaluation, and we have a very precise idea of the quality the oilfields have, and of the required development methods."
OMV made a discovery at the Mehr block in western Iran, but the company declined to name the two fields Seele referred to.
Seele also appeared to rule out bigger investments in Iran.
"There is a very, very big gas field," Seele said, apparently referring to South Pars. "If you want to get involved in such a business in Iran, the first question that will be asked is 'How many billions have you brought with you?'"
OMV would make its big investments elsewhere, he said.
"That is certainly not the strategy we are pursuing. We are primarily interested in investing here in Austria, in investing in the North Sea, and in having the rest of the portfolio balanced in such a way that a smaller Iranian activity fits inside it."
Recommended Reading
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.