MEED reported that the construction of early production facilities at the Yadavaran field in southwest Iran is running a year behind schedule and work is now expected to start up at the end of 2011.

As per report, China's Sinopec is expected to begin drilling operations at the Yadavaran oil structure by the end of July.

Sinopec, one of China's largest state owned energy firms is partnering with National Iranian Oil Company in Phase 1 and 2 of Yadavaran, which will produce around 85,000 barrels per day and 185,000 barrels per day respectively.

According to an upstream source in Tehran, Phase I of the Yadavaran oilfield project was originally set on 59 month schedule ending in late 2016 but this date is now looking doubtful. This is a result of difficulties with sanctions associated with the major packages and Chinese inefficiencies. Sinopec are probably 6 weeks away from spudding the first well.

The source said that the project has 2 major phases. Phase 1 drilling and exploration, Phase 2 production. They are doing phase 1 now and busy with importing drilling equipment.

Sinopec tendered eight engineering, procurement and construction deals along with a project management consultancy deal. A number of local companies were invited to bid for the deals but Sinopec stipulated that firms would only be permitted to bid for the EPC or PMC deals.

According to the Tehran source at least three local contractors are competing for the PMC deal. These include Namvaran Engineering & Management, Bina Consulting Engineers and Radha Engineering Consultant Company. The winning contractor will supervise the eight EPC deals. A decision on the PMC deal could be made by the end of June.

(Sourced from MEED)