The development of the first phase of South Azadegan Oilfield in Khuzestan Province has been undertaken by the Petroleum Engineering and Development Company and is expected to be completed by September 2023, managing director of PEDEC said.
“Hopefully, 30 wells will be drilled at the field by the end of the current Iranian year [March 2023] to help increase crude extraction from the field,” Abouzar Sharifi was also quoted as saying by the Oil Ministry’s news agency Shana.
Upon the project’s completion, the field’s crude oil production capacity will reach 320,000 bpd from the current 140,000 bpd.
“We are also cooperating with some knowledge-based companies to raise the output of wells located in the field,” he added.
Located 100 km west of Ahvaz, South Azadegan is part of the West Karoun oil block in Khuzestan.
West Karoun includes Mansouri, Yaran and Yadavaran, as well as North and South Azadegan joint fields. The block holds an estimated 67 billion barrels of oil in place.
PEDEC, which is a subsidiary of the National Iranian Oil Company, has developed several oilfields so far, including Yaran, Yadavaran and Azar, among others.
The company also plans to implement the integrated development plan of Azadegan field, shared between Iran and Iraq.
The vast Azadegan field has been divided into North Azadegan and South Azadegan. The two fields had been developed separately, but a master plan has been studied for the integrated development of the entire field.
Seeking to increase the field’s production to 570,000 barrels per day, the project will be completed with an investment of $7 billion.
Production Status
South Azadegan is estimated to hold 25.34 billion barrels of oil in place, while North Azadegan is estimated to hold 5.6 billion barrels.
Recovery from the first well drilled in South Azadegan occurred in 2007. Accumulated oil production from the field has surpassed 250 million barrels.
So far, 160 wells have been drilled and completed in this field.
North Azadegan first started oil supply in 2016. Accumulated output has since reached 150 million barrels. Of the total 58 wells drilled in the field, 51 are producing oil.
Production from North Azadegan is based on natural and artificial gas recovery. The recovery rate of this field is about 7%, which is acceptable for ultra-heavy crude oil.
Using domestically manufactured commodities is among the objectives of developing North and South Azadegan oilfields. In North Azadegan, Iran has a 51% share in commodities and services. In South Azadegan, all contractors involved in the project are Iranian.
Despite the US sanctions, Iran has continued development projects in oil, gas and petrochemical industries.
Former US president, Donald Trump, unilaterally withdrew from the 2015 nuclear deal, signed between Iran and six world powers, and imposed sanctions on Iran in May 2018, which targeted its key economic sectors, namely oil, banking and shipping industries.
However, the current US administration is considering a near wholesale rollback of some of the most stringent Trump-era sanctions to get Iran to return to compliance with the landmark nuclear accord.
Based on the latest reports, Iran’s current crude output is over 2.5 million bpd. With indirect talks continuing between Iranian and American officials regarding the revival of the nuclear deal and removal of sanctions, Iran is expected to boost output to levels before the sanctions hit the country.
