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25% Share From Joint Oilfield With Saudis

25% Share From Joint Oilfield With Saudis25% Share From Joint Oilfield With Saudis

While Iran owns only 11% of the Forouzan Oilfield, which it shares with Saudi Arabia in the Persian Gulf, it has managed to extract crude oil equivalent to nearly 25% of the joint field’s total production.

According to Shana, the joint field, which is called Marjan in the neighboring Arab country, Iran has so far produced 763 million barrels of oil, about 24% of Forouzan’s total reserve.

This is while the Saudis have extracted 2.36 billion barrels, which is 75% of the total production from the field.

Located 100 kilometers southwest of Kharg Island in the Persian Gulf, Forouzan was discovered in 1966 with an estimated in-place reserve of 2.3 billion barrels,  which has been revised up to 3.9 billion barrels.

Production from the field started in 1987 at 180,000 bpd, but declined to 40,000 bpd in 2000.

Based on a report from the Iranian Offshore Oil Company, the operator of the Iranian part of the joint field, Forouzan’s current daily production stands at 38,000 barrels.

The report said although Saudi Arabia’s processing installments in Marjan Oilfield have the capacity of 400,000 barrels a day, there is evidence indicating that the country’s present oil production in the joint field is about 190,000 bpd.  

Furthermore, IOOC’s reservoir studies show that the field’s crude is naturally immigrating from the Saudi side into the Iranian part, which can help Iran’s plans to boost its output from Forouzan.

Karim Hassanzadeh, the oilfield's project development manager, told Mehr News Agency in late April that plans have been devised to increase output from Forouzan by 2.5 times by developing the largest oil rig in the Persian Gulf.

“As soon as the offshore platform is complete, the current production rate will rise to 100,000 bpd," he said.

The official noted that in addition to crude output, gas condensate production will also rise twofold, from 7 million cubic meters to 14 mcm. Based on projections in 2012, the construction of the two rigs, weighing 10,000 tons, was estimated to cost $256 million, of which $90 million have already been allocated, Hassanzadeh said. The latest financial assessments now show the project will need $421 million.

Referring to the procurement of equipment to complete the mega project, he noted that negotiations are underway with the Iranian Offshore Engineering and Construction Company to meet the financial requirements.

 

Financialtribune.com