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Crude Output to Rise by 90,000 bpd

Crude Output to Rise by 90,000 bpdCrude Output to Rise by 90,000 bpd

Iran's oil production capacity will increase by 90,000 barrels per day in the near future, deputy oil minister and the head of National Iranian Oil Company said on Saturday.

“Development projects in West Karoun shared oilfields and the South Pars Gas Field top the National Iranian Oil Company's list of priorities in post-sanctions era,” Rokneddin Javadi also told Mehr News Agency.

Stressing that plans have been made to commence early oil production from two oilfields in West Karoun, called North Azadegan and Yaran, the official said, “Based on specific goals set in the Sixth Five-Year Economic Development Plan (2016-21), Iran's crude and gas condensates output capacity are expected to witness a rise of 1.7 million bpd, which will reach 5.7 million bpd.”

Referring to the rapid development in other joint fields, such as Azar, Yadavaran, Azadegan, Forouzan and South Pars oil layer, Javadi noted that the countdown to ramp up crude production from North Azadegan and Yaran Oilfields has started.

According to the official, North Yaran Oilfield has made 80% physical progress and early oil production is predicted to start from the border field by the yearend.

"Early production from North Yaran Oilfield will target extraction of 15,000 bpd," he said, noting that 20 wells have been drilled in the field and as soon as ground equipment are installed, it will go on stream.

Pointing to the first phase of North Azadegan Oilfield development as NIOC's second project whose production capacity will reach 75,000 bpd, Javadi said, "Gas installations, the powerhouse, pipelines and oil processing unit have already become operational in the field."

Asked about plans proposed to export crude, he noted that as long as oil pumping station in West Karoun region is not completed, North Azadegan's oil will temporarily be exported to target destinations through Ahvaz booster.

Known as Iran’s biggest and the world's third largest oilfield, Azadegan is located in the southwestern Khuzestan Province. The oilfield is divided 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. It is the biggest oilfield discovered in Iran in the last 30 years.

North Azadegan Oilfield is one of the fields shared by Iran with the neighboring Iraq, whose oil-in-place reserves are estimated at 5.6 billion barrels. Its development plan comprises two phases, each aimed at producing 75,000 barrels a day upon completion.

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.

Two of NIOC's most recent oil discoveries, Yadavaran and Azadegan fields with combined reserves exceeding 50 billion barrels of crude—nearly one-third of Iran's total reserves and more than Libya's total oil reserves—are bordering Iraq.

 

Financialtribune.com