The National Iranian South Oil Company is planning to increase its daily production capacity to 3.28 million cubic meters in the next five years, managing director of the company said.
“The project includes working on 254 development wells and repairing 546 wells. Through these activities, 347,000 barrels per day will be added to our daily production capacity,” Alireza Daneshi was quoted as saying by the Oil Ministry’s news agency Shana.
NISOC is responsible for the production of about 80% of the country's crude oil and 16% of natural gas.
“The scope of our activities in five subsidiary companies is spread across seven provinces,” he added.
Referring to the company’s 222 facilities, Daneshi said the company has 48 production units, 22 desalination units, 17 liquefied gas plants, 30,000 kilometers of oil and gas pipelines, 39 gas collection stations, 11 gas injection stations, 3 pumping stations and about 3,300 wells, more than 2,500 of which are active.
NISOC, the largest subsidiary of the National Iranian Oil Company, is responsible for the development of 28 oilfields in the southern and southwestern oil-rich regions.
Despite decades of sanctions and limited investment, Iran remains one of the 10 largest global oil producers, ranking eighth after the US, Saudi Arabia, Russia, Canada, Iraq, China and the UAE.
Iran sits on the world’s fourth-largest proven oil reserves after Venezuela, Saudi Arabia and Canada. It also accounts for 17% of global gas reserves and ranks second after Russia.
Increasing output has been planned in view of the country’s oil reserves that hold about 1,200 billion barrels of oil equivalent, including reserves of crude oil, natural gas and gas condensate.
Operations are underway to develop several oilfields to increase the country’s crude output capacity.
The fields include South Azadegan and Nargesi oilfields in Khuzestan Province, Naft-Shahr Oilfield in Kermanshah Province and Azar Oilfield in Ilam Province.
According to the latest reports, Iran is preparing to raise its crude oil production capacity to over 4 million barrels per day by the end of the current Iranian year (March 2023) from the current 3.8 mbpd.
Cooperation with local knowledge-based companies is a priority. Domestic manufacturing factories are doing their best to produce much-needed equipment and parts in the oil and gas sector.
One of the main measures that NISOC has been carrying out over the past few years is the collection of associated petroleum gases from oilfields. It collects more than 19 mcm of APG per day in cooperation with private firms and in line with the plan to zero gas flaring in the southern and southwestern regions.
Collecting APG from oil and gas fields is a priority of the Oil Ministry to help safeguard the environment, prevent the loss of national wealth and create jobs.
