Iran, Belarus to establish joint oil company

TEHRAN -- Iran and Belarus plan to establish a joint oil company for oversees projects.

During the meeting between Iranian Oil Minister Masoud Mirkazemi and the Belarusian Minister of Industry Alexander Radovic, the two sides agreed to launch the Belpars Company in order to carry out joint projects, the Mehr News Agency reported.

Development of Jofeir oil field was also discussed in the meeting.

"We expect the oil field to come on stream at the cost of $500 million," Mirkazemi said.

He went on to note that the field's early production will start in four or five months.

Jofeir oilfield is located in Iran-Iraq border and is expected to produce 30,000 barrels per day (bpd) of crude oil and 6.3 million cubic feet of natural gas based on initial estimations.

National Iranian Oil Company and Belarus National Oil Company Belarusneft signed a contract for development of Jofeir oilfield in September 2007.

Belarus said the crude from Jofeir would either be refined in Iran or simply extracted by Belarus and sold on world markets. It would be the first energy project abroad for Belarus.

In May 2009, Belarus Deputy Prime Minister Vladimir Semashko met former Vice Governor of the Central Bank of the Islamic Republic of Iran Reza Raei. Following this meeting, the Central Bank of Iran announced it will lend $212m to Belarus' state-run firm Belarusneft for the development of the Jofeir oil field


Partners: Social Network