Italian oil and gas industry contractor Saipem has announced it has entered into a memorandum of understanding (MoU) with Iranian energy firm Ravazi Oil and Gas Development, to develop the Toos gas field, in northeastern Iran.

Kallanish Energy reports the Milan-based company could drill up to seven wells, as well as design and build all upstream gas production facilities for the project. The Toos field holds over 2.11tn cubic feet (tcf) of gas in place and has the capacity to produce some 141.2bn cubic feet a day (bcf/d) of gas.

Saipem’s CEO, Stefano Cao, and Ravazi’s managing director, Ali Yadghan, signed the agreement during Italian Prime Minister Matteo Renzi’s recent official visit to Iran.

The new deal follows other agreements Saipem made in January, with the National Iranian Gas Co. (NIGC) for cooperation on pipeline projects, and the Parsian Oil & Gas Development Co. for renovation and upgrade of the Pars Shiraz and Tabriz refineries.

Source » oilandgasmiddleeast