Iran is cooperating with South Korea on the development of the Middle Eastern country’s offshore resources.
According to National Iranian Oil Company (NIOC), an agreement was reached on Monday, with South Korean energy company Kogas, over the development of one of Iran’s ‘key gas fields in the Persian Gulf’ – the Balal.
The Balal field lies approximately 90 kilometers to the southwest of Lavan Island and 40 kilometers southeast of the giant South Pars gas field in Persian gulf in a water depth of 60-75 meters along the Iran-Qatar border. The field is already producing oil, but Iran now wants to see how it can produce its gas reserves.
Under the agreement signed on Monday, Kogas will carry out technical studies over the gas layers of the Balal field, after which it will propose a development solution to NIOC.
The Iranian company said the development options also include a possibility of using the gas from the field to produce LNG.
The Korean company had earlier signed a basic agreement with the NIOC over the production of LNG, its marketing as well as the transfer of its experiences to Iran in the same area.
The signing of the deals with South Korea took place during a state visit to Tehran by the country’s President Park Geun-hye.
President Park arrived in the Tehran on Sunday for a three-day state visit. She is heading a delegation comprising over 230 executives and business people.
South Korea and Iran signed 19 cooperation documents on a variety of areas after President Park met her Iranian counterpart Hassan Rouhani.