The first well of Nasr 5 satellite platform in Sivand Oilfield in the Persian Gulf has become operational to help increase oil production in the field, managing director of the Drilling Company International said.
“With the activities of PetroIran Development Company to boost oil production in Dena, Esfand and Sivand fields, as well as the drilling and successful completion of three wells, the first production well of Nasr 5 platform has been launched, which increases the field’s production capacity by 2,000 barrels per day,” Hamidreza Saqafi was also quoted as saying by the Oil Ministry’s news agency Shana.
Referring to the unique conditions of Nasr 5 platform, he said, “Due to the unconventional dimensions of the platform and the instability of the seabed at its location as well as the limitations caused by power cables and entry and exit lines to the platform, using conventional drilling rigs in the Persian Gulf on this platform was impossible and as a result, drilling operations did not happen in the past decades.”
However, considering the concerns of Iranian Offshore Oil Company as the project employer, DCI (a subsidiary of PetroIran Development Company) conducted studies to investigate the drilling prospects. Eventually, an appropriate drilling rig was selected for the project and the drilling operation for the first well of Nasr 5 platform was successfully completed, Saqafi said.
The Sivand field is located on Siri Island, 100 km north of the border with the UAE.
Development of Three Fields
The Iranian Offshore Oil Company signed a contract with PetroIran Development Company in October 2018 for enhancing oil production in the three oilfields of Sivand, Dena and Esfand by 16,000 barrels per day.
Drilling, repair and completion of 13 wells in the three fields, in addition to drilling four new wells, re-drilling six wells and repairing three others were part of the contract. Work on different projects is underway by domestic engineers and experts.
The deal is in line with the government’s declared plan of action to boost oil output from offshore deposits.
Iran owns 145 hydrocarbon fields, of which 26 are shared with neighbors, namely Kuwait, Iraq, Qatar, Bahrain, the UAE, Saudi Arabia and Turkmenistan. In recent times, the government has placed higher priority on shared fields.
A part of the southern province of Hormuzgan, Siri Island is situated 76 km from Bandar Lengeh and 50 km west of the strategic island of Abu Musa.
With over a half century of experience, IOOC operates 15 oilfields in the Persian Gulf and Sea of Oman, and accounts for one-third of the total crude export. It has undertaken several major oil and gas development projects on the island, including an NGL gas factory.
Sivand Field with 18 wells and Dena Field with 24 wells produce an aggregate of 30,000-35,000 barrels of oil per day.
Esfand Oilfield has 29 production and injection wells and produces more than 60,000 barrels per day.
Drilling Company International was established in 2009 to provide offshore drilling rigs and services. Employing the latest technologies and state of the art equipment, DCI has expanded its offshore drilling competency.
DCI has been actively supplying and maintaining drilling sets and providing services as required by oil and gas fields.
Enhancing Output
Iran has ramped up oil production in recent months. In addition to the devastating impact of the coronavirus pandemic on the global oil industry that hammered oil prices, Iran’s key oil industry has been under added pressure from the 2018 US economic blockade that has targeted oil exports and the banking, shipping and insurance industries.
Iran has been subject to tough US sanctions since 2018, when the administration of then-president, Donald Trump, unilaterally withdrew from an international deal that restricted Iran’s nuclear activities.
US President Joe Biden is expected to restore that accord and officials in Tehran have expressed hope that he will ease restrictions on its petroleum sales. But for now, the sanctions are still in place and any buyer of Iranian crude would face the same legal and financial penalties that have deterred most potential customers over the past few years.
Currently, negotiations are underway in Vienna, Austria, between Tehran and six world powers to lift the sanctions so that Iran’s oil can return to the market.
