Development Plan of Yadavaran Oilfield

Objectives

Phase1

-        Reaching the production ceiling of 85 thousand barrels a day of oil (light and heavy)

-        Transmission of the producing oil (light and heavy) and gas

-        Collecting further reservoir data by drilling 2 key wells and 3 new delineation wells

-        IOR and EOR technical and economical study

-        Finalizing development plan of the second phase

Phase2

-        Reaching the production ceiling of 180 thousand barrels a day of oil (light and heavy)

-        Transmission of the producing crude oil (light and heavy) and gas

-        Completion of reservoir data by drilling 3 new delineation wells

-        Developing and finalizing IOR and EOR study

-        Finalizing development plan of the third phase

Phase3

-        Reaching the total production ceiling of 300 thousand barrels a day of oil (light and heavy)

-        Transmission of the producing oil (light and heavy) and gas

Location

Yadavaran oilfield is located 70km southwest of Ahvaz city at Iran-Iraq borderland.

Major Contractors:

-        Buy-back:

Sinopec Company

-        Local sources:

Companies: Sivil, Maroun Bana, Deputy for Operations of Nezaja, Nezsa Headquarters, Omran Iran consulting engineers, Rad Mechanic, Varaj, Faraj Rah Shadegan, Taradod Rah consulting engineers, Fan Avaran Aab consulting engineers, Isargaran Jonob, Sadid Ertebatat and Zolal

Executive Activities

Through Buy-back:

-        Drilling of 55 wells at first phase, 100 wells at second phase and finally, 105 wells at third phase of the development plan

-        Construction of surface facilities required for accumulating, processing and transferring the producing oil and gas

-        Treatment as well as injection of oil effluent

-        Gas lift installations to produce from heavy oil wells

And,

-        Construction of oil and gas pipelines have been forecasted

Seven out of eight early production wells have been drilled and drilling of the eighth well is in the pipeline. Drilling material purchase of the first phase is to be finished and drilling operations of the phase would start in May 2011. Purchase and construction of surface equipment is on the way and EPCC major contracts have been kicked off.

Through Local sources:

-         Construction of Main Roads as well as Access Roads

-         Preparing part of the area where wells are to be drilled

-         Mapping and field geotechnic services

-         Environmental studies as well as land demining of the first phase

Key Schedule

-        Buy-back confirmation date : August 2008

-        First phase operations date: August 2012

-        Early production announcement date: August 2009

-        Start date of early production from the field: August 2011