Four more contracts have been signed between the head of the Oil Industry Innovation and Technology Park representing the National Iranian Oil Company and the representative of four knowledge-based companies on Tuesday to revive low-yield oil and gas wells across Iran.
“New technologies will be employed to revive low-production wells and even increase the output of other wells,” Mohammad Esmaeil Kefayati, the head of the park, was also quoted as saying by the Oil Ministry’s news service Shana.
“There are over 700 low-yield wells in the country. Using modern methods to increase their output will help increase their oil production by 80 million barrels per year,” he added.
The new round of contracts is a follow-up to the first round held in January, when NIOC awarded $500 million worth of contracts to dozens of domestic companies to revive low-production wells.
Oil Ministry figures show reviving a low-yield well costs about $1 million, which is almost 90% cheaper than developing a new oil well.
Oil and gas production capacity could be enhanced from hydrocarbon reserves in abandoned wells and those whose production has decreased substantially with the help of cutting-edge technologies.
Domestic startups and knowledge-based companies can help minimize the risk of ventures like applying modern enhanced oil recovery (EOR) and improved oil recovery (IOR) techniques that are crucial for increasing production.
There are more than 500 knowledge-based firms active in oil, gas and petrochemical sectors, and taking advantage of their prowess can help reduce costs in the key industry.
The project is part of NIOC’s efforts to boost its output and exports of crude oil despite US sanctions that have targeted both Iran’s oil sales and its investment in the development of new oilfields.
Iran seeks to reach a daily oil output target of 5.7 million bpd by 2028. That comes as NIOC’s current output figure is around 2.6 million bpd, down from more than 3.8 million bpd reported by the company before the US imposed sanctions on Iran in 2018.
Iran has more than 5,500 oil and gas wells, more than 700 of which are in their last stage of production that is characterized by a slow, gradual decline.
NIOC has completed the construction of a new technology park in Shahr-e Rey in southern Tehran, indicating that it plans to support startups and university-based firms in oil-related industries.
