The first well drilled in the Asmari reservoir of Abuzar Oilfield in the Persian Gulf to increase crude oil production has now become operational, the head of petroleum engineering at the Iranian Offshore Oil Company said.
“With the development plans implemented in the past few years to produce oil from the upper Asmari layer of Abuzar Oilfield, the first well has come on stream now and plans are underway to drill five to eight more wells to add between 6,000 and 10,000 barrels of crude oil to the field’s output,” the Oil Ministry’s news agency Shana quoted Javad Rostami as saying.
“So far, development and production projects in Abuzar Oilfield has been focused on Ghar, Bergen and Dammam reservoirs. By the end of last Iranian year [March 20, 2021], 1,194 million barrels of oil from the Ghar reservoir, 13.5 million barrels from the Bergen reservoir and 6.7 million barrels from the Dammam reservoir were extracted,” he added.
The Iranian Offshore Oil Company, a subsidiary of state-owned National Iranian Oil Company, is in charge of developing crude oil reservoirs in the Persian Gulf region.
Abuzar is located 76 kilometers southwest of Kharg Island, the country's largest oil loading and export terminal.
Crude oil production from Abouzar stands at 220,000 bpd, making it one of the most prolific offshore Iranian oilfields. The field's output is transferred via subsea pipelines to Kharg for export.
Abuzar Oilfield holds 4 billion barrels of in-place crude oil, but only 20% of the deposit are currently recoverable through 67 active wells out of the field's total 107 wells.
IOOC is in charge of several other deposits, including Hendijan, Bahregansar, Reshadat, Soroush, Norouz and Doroud fields. It also collects associated petroleum gases from Kharg Island and Bahregan oil region in the Persian Gulf.
Oil production has reduced, as Iran faces export restrictions due to the US sanctions.
Former US president, Donald Trump, withdrew from the landmark 2015 Iran nuclear deal in 2018 and imposed new economic sanctions on the key oil, banking and shipping sectors.
According to data from S&P Global Platts, shipments of Iranian oil fell to as low as 200,000 bpd after the sanctions took effect while before that, in early 2018, Iran was exporting 2.5 million bpd.
Tehran has been trying to evade sanctions and sell oil by whatever means possible. Iran is reported to have exported nearly 1.5 million bpd of oil and condensates in recent months, according to recent data released by Tanker Trackers.
Iran continues to develop its massive oil and gas sector despite American hostility and the plunge in exports.
Expansion activities have continued despite dismal global demand and falling prices due to the spread of the coronavirus and universal lockdown measures to fight the deadly disease.
Authorities say higher production would meet growing domestic demand while it would ensure a quick return to international markets when US pressure tactics end.
Iran and the world powers have been negotiating since early April on restoring the nuclear deal, known as the Joint Comprehensive Plan of Action, to its original shape.
