Exploration and development of Iran's oilfields through buyback

The use of buyback for the development of oil and gas fields is an established mechanism in Iran. Current legislation authorizes the National Iranian Oil Company (NIOC) to use buyback for both exploration and development. The buyback scheme can be defined as a risk service contract, under which the contractor is paid back by being allocated a portion of oil/gas produced as a result of providing services. Buyback is based upon a defined scope of work, a capital cost ceiling, a fixed remuneration fee and a defined cost recovery period. When buyback is used for both exploration and development, the specifications of the field to be developed are unknown at the time of contracting and therefore agreement on the scope of work, duration of development operations, ceiling for capital costs, fixed remuneration fee, and duration of cost recovery need to be deferred to the time when a commercial field is discovered. This article first outlines the introduction of buyback for development of Iran's oil and gas fields. It then examines the main features of the mechanism. Third, the use of buyback for both exploration and development is explored and related challenges discussed. Finally, the article reviews the new buyback model proposed by NIOC to address these challenges.     

Assessing the chemical behavior and spatial distribution of yttrium and rare earth elements (YREEs) in a coastal aquifer adjacent to the Urmia Hypersaline Lake,NW Iran

This study aims to shed light on the seasonal behavior of yttrium and rare earth elements (YREEs) in the Urmia Aquifer (UA), in the immediate vicinity of Urmia Lake (UL) in Iran. Samples of groundwater, collected under dry and wet conditions in coastal wells of UA, suggest a large degree of variability in both YREE abundance and normalized patterns. Although weathering or water-rock interactions (between the surface/groundwater and rock samples) were predicted to be the most probable source in explaining YREEs in groundwater samples, results to the contrary indicate that the groundwater do not inherit aquifer rock-like YREE signatures in the study area; this might be due to the relative stability of YREEs during the process of water-rock interactions, which suggest that methods based on YREEs can be beneficial in discrimination of water sources. Furthermore, findings demonstrated no significant relationship between Ce/Ce* and salinity (0.08 and 0.05 in wet and dry seasons, respectively), and between Eu/Eu* and salinity (0.1 and ?0.04 in wet and dry seasons, respectively). Dissimilarity of patterns of YREEs in rock and water samples reveals YREEs as no conservative tracers in determining the UL saltwater intrusion into coastal groundwater. Therefore, the groundwater YREE concentrations and fractionation patterns in UA warrant controlling by coastal aquifer need to be controlled by other chemical weathering, adsorption, desorption, and solution complexation reactions. Finally, comparison of REE concentration values in groundwater samples with corresponding indicative admissible drinking water concentrations (IAC) demonstrated their suitability for drinking purposes.