Croatia's oil and gas group INA has confirmed that in 2012 it withdrew from an oil exploration project in Iran for a period set by the international community for restrictive measures imposed against that Asian country.
According to a press release issued by INA on Tuesday, in 2011 INA did not undertake any activity, which was stipulated by the pertaining contract and in 2012 it withdrew from the project for a period during which international restrictive measures are in force, the company said, responding to inquiries about its departure from exploration in the Moghan-2 block. INA explained that it had taken such steps in compliance with the sanctions regime.
In April 2008, INA and the the National Iranian Oil Company (NIOC) signed a contract on exploration and drilling activities in the Moghan-2 block. The Iranian Mehr news agency reported today that "INA has withdrawn from a project for developing an oil block in Iran" and that this deal, inked in 2008, was worth USD141 million.
According to the Iranian news agency, "the primary purpose of the project was to discover new hydrocarbon reserves through a contract on provision of services with the NIOC. But, the Croatian company left the project due to some problems related to foreign currency exchange," the report added.
The exploration block Moghan-2 is located in the Caspian region of northwestern Iran near the border with Azerbaijan.
NIOC issued a tender in 2007 inviting foreign companies to apply for exploration in 17 blocks, with INA competing for Moghan-2.
