Isfahan has hit oil. Spurt of oil from the first well in the central part of Iran near Aran and Bidgol cities in Isfahan province started recently and an oil pit was formed in the discovery area. Director of exploration at the National Iranian Oil Company (NIOC) confirmed the news saying that, "We burned the first oil gushing out in the region to make sure about its presence." Mohaddes noted that exploration studies in the region started as of 2000 by the Chinese Sinopact Company, adding, "The region that was to undergo seismological studies was 4,600 square kilometers and included areas in Aran, Bidgol, Zavareh and Kashan."

Director of exploration at the National Iranian Oil Company further noted that oil was discovered at a depth of 3,960 meters and based on preliminary studies it was among the highest quality light crude in the world. Mohaddes stated that the Chinese company was obliged to drill another well to determine the reserves of the field accurately.

"The field comprises three layers that must be tested. After that, we could decide about commercial value of the field," he noted. Based on a contract worth $36 million, the Chinese company has been committed to carry out exploration operations in the said region. If it hit oil and the field proved to be commercial, the principal, interest and commission would be paid to the company.

Speaking a few minutes after a Cabinet session, Minister of Oil, Bijan Zangeneh referred to the discovery of oil near Aran and Bidgol city, but said, "It is an important development, but we must not hurry." He added that oil discovery in a region other than Zagros region was a success, especially taking into account that the discovery was made through a new method used by the Ministry of Oil.

"This was a success because in this method, the National Iranian Oil Company did not pay anything for preliminary studies and exploration and the risk was totally accepted by the Chinese Company which is one of the biggest oil companies of that country," he noted.

Zangeneh stated that it was early to talk about the field being commercial. "We must not jump to conclusions, but wait for the results of laboratory tests; so that, the quality of oil, the amount of reserves and particulars of the field are clarified," he noted. Asked about the impact of the discovery on the scheduled tender bid for 16 other blocs, the minister opined that the development would affect the upcoming tenders. Several years ago, Zangeneh invited foreign companies to assume the risks and embark on oil exploration in central parts of Iran. Now, that proposal is bearing fruit.

Meanwhile, Mehdi Mirmoezzi, deputy oil minister and the managing director of the National Iranian Oil Company said that oil discovery in a region other than oil-rich regions of Iran was very important. Mirmoezzi said, "We didn’t think that any oil could be found in that region."

Asked about the quantity of discovered oil, Mirmoezzi stated, "We must wait until the reports are complete and the second well is drilled. However, we are hopeful." Responding to another question about inviting creditable international companies to take part in the tender bid for the field, the deputy minister said, "If the field proved to be commercial, we could negotiate about its development with Chinese companies, provided that the Economy Council would issue necessary permits. If those permits are not issued, we would hold an international bid and give a minimum 20-percent share to the Chinese company."

Mirmoezzi announced that another tender bid was to be held for central regions of Iran. "We would launch another bid within one or two months for 16 exploration blocs at central and western regions as well as Sistan and Baluchestan province in the Netherlands," he said. The deputy oil minister added that the National Iranian Oil Company was determined to go on with exploration projects in areas around Aran and Bidgol.