Iranian companies will produce pipes for 28 oil reservoirs in the south and southwest, managing director of the National Iranian South Oil Company said.
“The project includes laying 5,000 km of pipelines. Four local companies will produce 3,500 km of pipes and the contract for the remaining pipes has been finalized,” Energy Today quoted Ahmad Mohammadi as saying.
Esfarayen Pipe Making Company, Iran National Steel Industrial Group, Ahwaz Pipe Manufacturing Company and Saveh Pipe Making Company are the four companies selected for the job.
Pipe-laying is a part of the projects that also include drilling 228 oil wells, repairing 143 others setting up pumping stations.
About 70% of the work is over in southwestern Khuzestan Province and 30% in other provinces in the vicinity of NISOC territory including Ilam, Fars, Bushehr and Kohgilouyeh-Boyerahmad.
NISOC produces 80% of Iran’s crude oil and is due to boost production by 340,000 barrels a day with the completion of the projects.
Projects are underway at Ahwaz 14, Ramin, Maroon 25, Mansourabad, Siahmakan, and Zilaei reservoirs among others.
NISOC also promotes domestic production using local workforce and domestic technology.
Moreover, collecting associate petroleum gas to help zero gas flaring in the southern and southwestern regions is among the ongoing projects. NISOC now collects more than 19 million cubic meters of APG per day in cooperation with private firms.
In the last Persian calendar year (March 2020-2021) about 85% of APG was collected from the oil-rich southern and southwestern regions.
Collecting APG is a priority of the Oil Ministry to help safeguard the environment, prevent loss of national wealth and create jobs.
Iran has made progress in using flare gas either for power generation or as feed for refineries. Reports say the government has invested $5 billion in related projects.
The Oil Ministry has adopted several measures to reduce gas flaring, namely collecting APG for injection into oil and gas wells, and converting it into petroleum products like natural gas liquids and for power production.
Since 2008 Iran has prevented the flaring of over 12 billion cubic meters of APG, a source of global warming and waste of valuable fuel.
Despite the measures, Iran has the highest rate of energy waste in the form of APG in the Middle East and ranks third in the world in terms of gas flaring after Russia and Iraq.
According to official reports, approximately 17 bcm of gas is still flared and wasted annually.
