Development projects are underway to increase output in two oil fields in southwest Iran. The projects are in Zilaei Field in Khuzestan Province and Siahmakan Field in Kohgilouyeh-Boyerahmad, the Oil Ministry news agency Shana reported.
Zilaei Field is operated by the National Iranian South Oil Company that has begun installing the first rig for drilling nine wells.
The field on average produces 19,000 barrels of crude oil a day and is estimated to hold 80 billion cubic meters of oil in place.
Development of Siahmakan Field, also operated by the NISOC, includes drilling four development wells, construction of a segregation complex, a booster cluster and an oil pressure booster with a capacity of 10,000 barrels per day, plus a 12-inch underground gas pipeline and 8-inch oil pipeline.
NISOC, which contributes to nearly 80% of Iran’s crude oil output has defined 28 development projects to be implemented in the fields it operates in the southern and southwestern regions.
Iran continues to develop its massive oil and gas sector despite the US economic blockade that has harmed its crude oil export since 2018.
Expansion activities have continued despite dismal global demand for oil and falling prices due to the coronavirus and universal lockdown measures to fight the deadly disease.
Authorities say higher production will meet domestic demand while ensuring a quick return to international markets when the US sanctions end.
Former US president Donald Trump withdrew from a landmark Iran nuclear deal in 2018 and imposed new economic sanctions, mainly targeting the key oil, banking and shipping sectors. However, the new President Joe Biden is expected to return to the 2015 nuclear deal and lift the illegal restrictions.
