The first phase of Jofeir and Sepehr oilfields’ development plans in Khuzestan Province will be completed in November, managing director of Pasargad Energy Development Company said.
“The fields’ production capacity is expected to reach 35,000 barrels per day as soon as the first phase operations are carried out,” Alireza Sadeqabadi was also quoted as saying by IRNA.
The implementation of the second phase will help increase the production capacity by three times. It is very likely that a new hydrocarbon layer could be discovered in the fields.
PEDEC is implementing the plan with no foreign partners and the whole initiative is undertaken with the help of domestic firms, namely Petroleum Engineering and Development Company (PEDEC), Tadbir Drilling Development Company, Pezhvak Energy Company and Iran International General Contractor Company.
The National Iranian Oil Company finalized an agreement with PEDEC to develop the oilfields in 2018 within the framework of Iran Petroleum Contracts, the country's new model of contracts for oil and gas projects.
The 20-year contract was the first IPC-based deal signed between NIOC and a domestic company.
Direct and indirect costs of the plan are projected to reach $413 million and $242.7 million respectively.
As per the agreement, PEDEC was commissioned not only to drill 130 wells and lay pipelines, but also to equip wells with submersible pumps, oil separators and enhanced oil recovery methods to raise output.
PEDEC, a subsidiary of Bank Pasargad, is active in offshore drilling (jackup rig operation), general contracting (oil and gas exploration and production) and pipe manufacturing.
Sepehr Oilfield is a reservoir in the West Karoun oil block in Khuzestan. According to estimates, Iran needs to spend $1 billion to tap into the field's 300 million barrels of proven reserves.
Jofeir Oilfield is 50 kilometers west of the city of Ahvaz and also contains gas deposits.
Referring to a memorandum of understanding signed between NIOC and four banks, namely Bank Pasargad, Eghtesad Novin Bank, Mellat Bank and Tejarat Bank, the official noted that the banks are expected to invest close to $12 billion in oil and gas projects.
West Karoun Oilfields
According to Sadeqabadi, PEDEC has expressed readiness to develop West Karoun oilfields, including Azadegan and Darkhoein, with the help of the four banks’ financial resources.
“Raising Azadegan Oilfield’s capacity by 250,000 barrels per day requires an investment of $5 billion,” he added.
Moreover, Darkhoein Oilfield’s production capacity can increase by 110,000 barrels per day, which also needs $2.5 billion to undertake drilling operations.
The official announced that negotiations are underway with NIOC to build a refining facility with a total capacity of 300,000 barrels at an estimated cost of $7 billion on Qeshm Island.
West Karoun includes several large oilfields straddling the Iran-Iraq border, namely Azadegan, Yaran, Yadavaran and Darkhoein, with the first three divided into north and south projects. The block holds an estimated 67 billion barrels of oil in place.
Regarding other energy projects undertaken by PEDEC, he noted that the firm has completed power plant ventures in Qeshm and Urmia (West Azarbaijan Province).
Furthermore, PEDEC completed Phase 1 of Qeshm ultra-heavy crude oil refinery in Hormozgan Province in February.
“Costing $220 million, the refining complex has a processing capacity of 35,000 barrels of heavy crude per day.”
Located on Qeshm Island in southern province, it took eight years to build on a 45-hectare plot with the help of domestic engineers.
Sadeqabadi said the feedstock will be provided by offshore platforms in Soroush and Norouz Oilfields in the Persian Gulf.
The refinery's output will primarily be bitumen [960,000 tons per annum] plus diesel, kerosene and naphtha [7 million barrels]. The facility will convert very heavy oil grades produced in the region into value-added commodities and create jobs in the region.
The company has invested close to $500 million in the island’s infrastructure development plans over the last four years, because of which products worth $6 billion can be exported from the island annually.
