Iran, Iraq to Invest in Azadegan Oilfield

Iran, Iraq to Invest in Azadegan OilfieldIran, Iraq to Invest in Azadegan Oilfield

Iran and Iraq are planning to develop partnership in the jointly-owned Azadegan Oilfield, new Iraqi ambassador in Tehran, Rajeh Saber Abboud al-Mousavi, said Tuesday.

"Senior oil officials from the two neighbors are negotiating to this end. A joint investment will be made for development of the field in the near future," Fars News Agency quoted him as saying in an interview.

Iraq started producing 210,000 barrels per day from the field in April 2014. The field, called Majnoon on the Iraqi side, has been awarded to a consortium led by the Royal Dutch Shell, with a planned production plateau of 1.8 million bpd.

In 2009, the National Iranian Oil Company signed a $2.5 billion contract with the state-run China National Petroleum Corporation, which was ultimately annulled in May 2014 due to repeated delays by CNPC.

Known as Iran’s biggest and the world's third largest oilfield, Azadegan is located in the southwestern Khuzestan Province. The oilfield is separated into northern and southern sections on the Iranian side, with oil-in-place reserves of about 33.2 billion barrels, of which 6 billion barrels are deemed recoverable.  

Production from five oilfields jointly owned by Iran and Iraq in West Karun region is projected to increase by 280,000 bpd in the current Iranian year (began March 21).  West Karun, in southwest Iran, includes Yaran and Mansouri fields as well as Yadavaran and North and South Azadegan joint oilfields with Iraq.