Caspian Crude Projects on Offer

Caspian Crude Projects on OfferCaspian Crude Projects on Offer

Three exploration blocks and Sardar-e Jangal oil and gas field in the Caspian Sea have been introduced as part of new Iranian oil and gas contracts, known as Iran Petroleum Contract, on Sunday to attract foreign investment.

"According to geochemical studies in the Caspian Sea, 46 structures have been specified, of which eight blocks top the list of priorities of the National Iranian Oil Company and Khazar Exploration and Production Company, or KEPCO," KEPCO's Managing Director Yousef Etemadi was quoted as saying by Shana.

"In 2011, we drilled the first oil well to a depth of 2,500 meters in Sardar-e Jangal oilfield and then in early 2015, second well were exploited with the aim of description, exploration and drilling activities."

Etemadi added that the second oil well was drilled deep in 3,500 meters under seawater. The Caspian region is one of the oldest oil-producing areas and is an increasingly important source of global energy production. It holds an estimated 48 billion barrels of oil and more than 8 trillion cubic meters of natural gas in proven and probable reserves.

For the first time in more than a century, Iran discovered oil in its Caspian Sea waters in 2012, according to state media. The deposit was found at a depth of 2.5 kilometers and was estimated at that time to contain some 10 billion barrels of crude, or roughly 7% of Iran’s known reserves.

However, despite exponential growth in terms of extraction from southern oil and gas fields in the past few years, the Islamic Republic has yet to extract crude from its northern Caspian waters.

Stressing that Amir Kabir Rig in the oilfield is capable of drilling up to 20,000 feet, Etemadi said volumetric calculations show that Sardar-e Jangal has about 2 billion barrels of oil.

"With the 39 API gravity oil, the field's crude is of high quality, without containing water, carbon dioxide and sulfuric acid," Etemadi said.

In mid-September, Iranian and Azerbaijani officials discussed the exploration and development of the Caspian Sea oil and gas fields in Baku, in the latest rounds of talks between the two countries to tap the rich oil and gas resources of the world's biggest lake.