TEHRAN (PEDEC) – The National Iranian Oil Company (NIOC) has signed a contract with Persia Oil and Gas Industry Development Company (POGIDC) for the development of Yaran joint oilfield.
The contract is aimed at development and integrated operation of the Yaran joint field pursuant to a heads of agreement (HoA) signed earlier for studying the field.
The agreement, which is signed with the aim of maximizing the potential of Iranian exploration and production companies, aims to achieve additional cumulative production of about 39.5 million barrels over 10 years in the field, with direct capital expenditures of $227 million and operating costs of an estimated $236 million. The developer of the project is required to provide all the necessary financial resources for implementation of the project.
According to Shana , Iranian Minister of Petroleum Bijan Zangeneh addressing this ceremony and emphasized the importance of joint fields for Iran’s oil industry as a necessity and continued that the fate of all Iranian joint oil and gas fields would be determined by the end of Iranian President Hassan Rouhani’s term as president.
He went on to add that the contract for developing Aban and West Paydar fields is being implemented, and said: “In this way, the fate of all joint oil and gas fields in the country will be determined by the end of the [Rouhani] administration.”
North Yaran Development Project is the first 100% Iranian buyback project that was implemented by Persia Oil and Gas Industry Company with the aim of producing 30,000 barrels per day of crude oil. It was officially put into operation in November 2016 and about a year later, oil was extracted from the southern part of Yaran field by PEDEC.
Zangeneh stressed that no IPC agreement would be concluded without the participation of an Iranian partner, adding that the South Yaran project was previously being developed by the PEDEC (Petroleum Engineering and Development Company) and North Yaran by Persia Oil and Gas Industry Development Company. The two contracts have been merged and its contract in an IPC format is signed with Persia Oil and Gas Industry Development Company.”
The Minister of Petroleum stated: “Considering the capacity of various contract models, we are pursuing the production maintenance and enhancement plan under EPC/EPD contracts, in which we have so far obtained more than $6 billion approvals by the Economic Council; the plan will be financed through the capital market. The advantage of these contracts is that the project will be awarded to the contractor in an interconnected set and the contractor will deliver oil. A list of equipment is attached to these contracts, which must be provided from inside Iran.”
Zangeneh also said development project did not only concern join fields and included all the oil and gas fields in the country.
The project entails drilling 6 new wells (three wells in North Yaran and three others in South Yaran), drilling a descriptive well, drilling a well for water injection, workover operations in five wells, equipping 27 production wells in Sarvak Layer with ESP pump, constructing and upgrading ground facilities, conducting laboratory studies, and designing the enhanced oil recovery (EOR) method.
Implementation of this development project, which has been carried out by relying on domestic capacity and capabilities, enhances the country’s crude oil production capacity, and maximizes the use of domestic potentialities, ensures business boom in the southwestern province of Khuzestan and generates jobs for local manpower.