Managing Director of Iran's Petroleum Engineering and Development Company (PEDEC) Seyed Nureddin Shahnazizadeh announced the beginning of oil production from Azar field on Tuesday saying “recovery of crude oil has begun at the joint oilfield with a capacity of 1 thousand barrels per day.”
He said the field had 2.44 billion barrels of crude oil in place though new findings indicated presence of over four billion barrels of oil in Azar field.
Shahnazizadeh underlined that 19 wells had been drilled in the oilfield adding “the field has begun operation with an output capacity of 15 thousand barrels per day while the figure is expected to climb to 30 thousand barrels by May and later hit 65 thousand barrels by the end of next Iranian calendar year (to begin March 21).”
He stated that more than 129 kilometers of pipelines had been constructed for the oil field which also possesses 71 million cubic meters of gas; “the project required a total investment of 1.234 billion euros,” he continued.
The first phase of oil recovery from Azar oilfield began operation on Tuesday morning at presence of Iranian Petroleum Minister Bijan Zanganeh.
During the opening ceremony, Zanganeh said the second phase of Azar field could be developed within framework of new model of oil contracts dubbed as Iranian Petroleum Contracts (IPCs).
He said the second phase of the joint oilfield was expected to increase output to 100 thousand barrels per day.
“Gas with oil of Azar field will supply the required NGL feedstock to Dehloran petrochemical complex,” underscored the Iranian oil minister.
Bijan Zanganeh also pointed to the launch of tender for Azadegan oilfield maintaining that “qualified applicants have been identified and the international tender will be soon invited.”