(Persia Digest) – Iran and the UK have signed a Heads of Agreement following a US withdrawal from the JCPOA, to develop the Karanj oilfield in Khuzestan Province, southern Iran. The shake hands agreement has been signed with the Pergas Consortium in the presence of Iran’ Petroleum Minister, Bijan Zangeneh and the UK Ambassador to Tehran.

The HOA was signed by Bijan Alipour, Director of National Iranian South Oil Company (NISOC), and Pergas Consortium Managing Director Colin Rowley.

If the agreement is finalized by both parties to develop the oil field, 200 thousand barrels of oil a day will be produced. Overall, 655 million barrels will be produced over a 10-year period to the tune of estimated direct capital costs of USD 1BN and 167 MM. Indirect costs are estimated at USD 187MM.

The full implementation of this plan will increase Iran's crude oil production capacity and provide employment opportunities in Khuzestan Province.

Pergas Consortium (a group of international companies investing in oil and gas), AGR Norway (drilling and engineering design), SPEC Middle East (construction of utilities for operations), LOOBY UK (production of surface equipment), PNOC (Philippines National Oil Company), and Sharif University of Technology are the main member of the consortium managed by Pergas.

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