Iranian Oil Company UK Ltd

Description
Full company report

Iranian Oil Company UK Ltd is one of the upstream oil companies involved in the initial stages of Exploration activity in the United Kingdom Continental Shelf (UKCS) of the North Sea. The Company was formed in August 1971 subsequent to the decision and Agreement reached between the British Petroleum and National Iranian Oil Company to form a joint venture for the Exploration in two Blocks in the North Sea.

IOC UK Ltd presence in the North Sea was initiated due to the strong relationship which had developed between NIOC and BP in the course of long business in Iran. BP invited NIOC to join the Exploration in the North Sea area and this resulted in an award by the DTI of Licence (P198) in the fourth round of licensing in July 1972 in which IOC UK Ltd had initially 50% equity.

IOC UK Ltd after re-organization of NIOC in 1999 is now an affiliate of Naftiran Intertrade Company (NICO) and is currently shareholder in UKCS Blocks 3/29a with 50% and in Block 15/13a with 100% equity.

IOC UK Ltd has invested in the Development of �300 million HPHT Rhum Field gas condensate. The field production has commenced in Dec 2005 with initial gas rate of 150 million cubic feet (about 23000 b/d oil equivalent) per day. The field development is planned to reach a plateau rate of 300 million cubic feet (about 53000 b/d of boe) in 2006 which is about 2% of UK gas demand.

IOC UK Ltd is nominated as a Drilling Operator for the licence of P198 by DTI after acquiring 100% equity in Block 15/13a in Dec 2003. The Company is planning to follow further Appraisal/ Exploration activity of the HOOD discovery and other unexplored structures within the existing Block with the aim to create upside value in this opportunity. IOC UK Ltd is looking forward to establish the new joint venture in order to apply the new technology, innovative commercial arrangements with service providers to act quickly.

The challenges for IOC UK Ltd at this time is to successfully reaching to the full development of the Rhum Field and follow the Appraisal and Exploration of other structure in 3/29a and 15/13a, whilst pursing further opportunities in the UKCS to be added to its portfolio.

IOC UK Ltd is fully funded and financially supported by its holding Company Naftiran Intertrade Company (NICO).