Russian Firm Interested in Ilam Oilfield

Russian Firm Interested in Ilam OilfieldRussian Firm Interested in Ilam Oilfield

Russia’s state-owned oil firm Zarubezhneft is ready to develop Changuleh Oilfield in western Iran, governor general of Ilam Province said on Monday.

“Developing Changuleh Oilfield is a priority for Zarubezhneft in the Iranian energy market … a Russian delegation is scheduled to visit Ilam to explore oil and gas investment opportunities,” Mohammad Reza Morvarid said after a meeting with Zarubezhneft General Director Nikolai Brunich, Shana reported.

Located in western Ilam Province across the Iraqi border, Changuleh is estimated to hold 7 billion barrels of oil reserves. Production is expected to reach a maximum 75,000 bpd upon completion. Iran and Iraq have six joint oilfields, of which Iran produces around 130,000, and Iraq 295,000 barrels per day.

Morvarid said Ilam is the country’s third richest province in terms of oil reserves and holds the second largest gas reservoir.

“Having rich hydrocarbon resources and easy access to West Asian markets and Middle East terminals have turned Ilam into an attractive economic target for major global companies,” he added.

Zarubezhneft officials visited Tehran last week as part of a 50-strong delegation of Russian companies in the oil, gas, petrochemical, power plant and railroad industries to explore areas of cooperation in the country’s emerging markets upon the lifting of sanctions.

According to Russia’s Energy Minister Alexander Novak, who headed the delegation, Zarubezhneft will take up several projects worth a total of $6 billion in Iran’s oil industry.

The company has been for long considering participation in Iran’s upstream projects. It has been reportedly involved in discussions with officials from the National Iranian Oil Company since 2008.