The Russians have sharpened their teeth for the Azadegan oil field

Iran Press News: On Thursday November 16th, the Russian news agency Novosti reported that the First Vice-President of the Russian oil giant LUKOIL Ravil Maganov told reporters that the company announced its interest in the Azadegan Oil Field in Iran. This oil field is one of the world’s biggest oil reserves at 26 billion barrels.

In February 2004 a contract to exploit the oil field was signed between the Japanese oil company "Impex" and the Iranian national oil and gas company. A agreement had accorded a two and a half year implementation time period after which the contract would have expired. By 2007, "Impex" had intended to consume approximately 400,000 barrels a day however this $2 billion plan did not become operational.

As a result in October this year the Japanese company’s share in the Azadegan Oil field decreased from 75% to 10% and the remaining shares was then transferred to the Iranian side. The government of Iran deems it entirely possible for other foreign companies to exploit this field.

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According to Forbes magazine, the Russian oil giant Lukoil intends to become one of the most stable and integrated energy companies in the world within the next decade; Lukoil is attempting to have a retail presence in the U.S. market and the potentiality of refining as well as storing vast oil reserves that surpass Russian use. Senior management of Lukoil believe that this company should use it’s current high income for the development of many fields in western Siberia and for the first time, also purchase fields outside Russia, in places such as Venezuela. Lukoil’s income is dependent on the next decade’s oil prices that can bring in anywhere between $72 to $112 billion. With the price of oil during last two years, the investments of Lukoil has strongly expanded; among those investments are the discovery of 1.6 billion barels in the Caspian Sea and exploration operations in remote areas of eastern Siberia.