Output to Increase at Joint Iraqi Oilfields

Output to Increase at Joint Iraqi OilfieldsOutput to Increase at Joint Iraqi Oilfields

Plans have been made to increase oil production by 90,000 barrels per day from joint oilfields with Iraq by the end of September.

"According to the plan, 60,000 barrels will be extracted from South Azadegan Oilfield whose current production stands at 50,000 bpd  and the rest will be produced in North Yaran Oilfield, whose present output amounts to 15,000," Abdolreza Haji-Hosseinnejad, managing director of Petroleum Engineering and Development Company, told Mehr News Agency.

According to Haji-Hosseinnejad, it is predicted that the initiative will be materialized in less than four months as a result of which Iran's oil export will experience a rise.

Noting that the project is grappling with financial constraints, the official added that if sufficient liquidity is injected, output from South Azadegan can reach 80,000 bpd.

Asked about the final destination of the oil produced from West Karoun Oilfield, he said, "The extracted oil will be transferred to Jafir processing unit in Khuzestan Province, which will subsequently be sent to Ahvaz."

West Karoun, located in southwest Iran, includes Yaran and Mansouri fields as well as Yadavaran, North and South Azadegan joint fields with Iraq.

  Oil Exports to Italy

According to Mohsen Qamsari, director of international affairs at the National Iranian Oil Company, the first oil cargo will leave Iran for Italian refiner Saras SpA in the near future. Based on the preliminary agreements, Iran will provide Italian refinery with 35,000 bpd and in case the terms of the contracts are met by the Italian enterprise, crude export level will witness a double rise.

Asked about the delay in exporting oil to Italy's Eni as a traditional customer, the official said, "In the last few years, the Italian oil giant has sold most of its refineries'' stakes.

The company has already lost a part of its market share, which has also been a contributing factor in postponing oil export resumption to this company."

Pointing to ongoing negotiations with Eni, Qamsari added that NIOC is ready to resume oil export to the refiner and if the current negotiations come to fruition, Eni will be provided with 100,000 bpd.

"NIOC is close to resuming shipments to Italian oil and gas giant Eni in the near future," he said.

Eni ceased the import of Iran's crude in 2012 after western sanctions targeting Iran's nuclear program were intensified.


  Oil Talks With Indonesia

In an interview with METRO TV in Jakarta, Indonesia, Iran's Minister of Economy Ali Tayyebnia announced that the Persian Gulf state is ready to provide Indonesia with 200,000 barrels of oil per day.

"Central Java oil refinery's much-needed crude, whose processing capacity stands at 120,000 bpd, can be imported from Iran as the quality of the Persian Gulf state's oil is matching the refiner's standards."

Pointing to negotiations between Iran and the Southeast Asian country, Tayyebnia added that Iran's right to boost its oil export to pre-sanctions level is non-negotiable.

On Iran's strategy to increase oil export, he added that most traditional customers have shown interest in renewing their previous contracts.

The Indian minister stressed that Iran and Indonesia are committed to boosting crude oil trade to meet the latter's demand. Tayyebnia believes that extending cooperation in oil and gas sector can be a driving force to encourage growth in other sectors of the economy as well.

Stressing on expanding collaboration between Tehran and Jakarta, Indonesian's Minister of Finance Bambang Brodjonegoro noted that his country welcomes signing oil purchase contracts with Iran and attracting Iran's investment to build refineries in this state on condition that Iran guarantees crude supply to the refinery.

According to Brodjonegoro, Indonesia's fuel consumption is twice as much as its domestic production, which explains Jakarta's endeavors to attract foreign investment for developing energy projects in this country.