Iran to ink $25bn new oil deals

News ID: 3849004 -
TEHRAN, Dec. 13 (MNA) – PEDEC managing director has reported on plans to sign into agreements worth 25 billion dollars for expansion of two huge join fields in the post-JCPOA era.

Delineating major developmental plans for joint fields with Iraq in West Karoun region in southwestern Iran, Managing Director of Iran's Petroleum Engineering and Development Company (PEDEC) Seyed Nureddin Shahnazizadeh said “Azadegan and Yadavaran remain as largest oil fields in the region though expansion of Azadegan is being carried out together with a number of smaller fields.”

The official, while announcing that Azadegan developmental project encompasses North and South Azadegan as well as North and South Yaran fields asserted that in the MoUs inked with eager companies like Total or Shell, Azadegan oil field has been considered as a unified whole.

Shahnazizadeh also stressed that elevation of recovery factor has been put high on agenda in development of the two giant oil fields in southeastern Iran; “approximately 25 billion dollars of investment is expected to be made in two oilfields via sealing new agreements.”

Earlier in March, National Iranian Oil Company (NIOC) and France’s Total S.A. signed a confidential disclosure agreement in the coming days in order to develop South Azadegan joint oilfield.

Previously, the Project Director of the Development Project of South Azadegan Seyed Mahmoud Mar'ashi estimated that the required volume of investment for the project will be less than five billion dollars in order to reach a daily production of 300 to 320 thousand barrels of crude oil.

Presently, about 50 thousand barrels of crude oil is being extracted from the joint oil field while completion of the first developmental phase will raise the output to 100 thousand barrels per day by the end of the current year.

With completion of Phase 1 of North Azadegan oilfield, in collaboration with China National Petroleum Corporation International (CNPCI), the production at Yadavaran joint field has also surged to 115 thousand barrels per day as a result of cooperation with Sinopec.

Oil production at the joint oilfield with Iran has currently reached 115 thousand barrels which exceeds the initial commitment made for the first developmental phase by approximately 30 thousand barrels.

Yadavaran oilfield has a reservoir of 17 billion barrels and a potential to produce 300-400 thousand bpd of crude oil.

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