Output to Reach 600,000 bpd in 3 Oilfields

Output to Reach 600,000 bpd in 3 OilfieldsOutput to Reach 600,000 bpd in 3 Oilfields

The production of 600,000 barrels of oil per day from Maroun, Koupal and Shadegan Oilfields is high on Marun Oil and Gas Production Company's agenda, director of MOGPC said on Tuesday.

“Sustainable long-term production is what we are aiming at, for which plans have been devised not only to drill new wells but also to develop and repair the old ones,” Jahangir Pourhang was quoted as saying by Shana.

Underscoring the fact that MOGPC is a subsidiary of National Iranian South Oil Company, the official added that the company's capacity to produce oil, natural gas and gas condensates stands at 600,000 barrels per day, 17 million cubic meters and 35,000 bpd respectively.

Pointing to the National Iranian Oil Company's policy to raise oil production, Pourhang said NISOC has also been obliged to increase output and accordingly its five subsidiaries, including MOGPC, have been assigned to carry out their mission.

Asked about MOGPC's share in NISOC oil production, Pourhang said, "Given that country's total production is as many as 3 million bpd, MOGPC accounts for 20% of it."

According to the official, the company experienced the least production decline of about 70,000 bpd in 2015, compared to that of other domestic oil producers.

"MOGPC's oil is consumed domestically, which explains why it witnessed the minimum output reduction rate, standing at about 12%. Moreover, the company succeeded in realizing its planned production rate, amounting to 101%, in 2015.

Stressing that Maroun desalination unit's overhaul took only two weeks, Pourhang said as soon as MOGPC's personnel were informed about the directive to increase oil output, its skilled workforce did their best so that the company could reach its output ceiling in less than two weeks.

  Plans to Boost Production

"A tender is expected to be held for Shadegan Oilfield to boost production from the southern oilfield that has been in operation for more than 25 years," he said.

The head of MOGPC noted that NISOC will conduct technical assessments on the project, which entails the installation of a pair of 30-kilometer pipelines, oil pumps and separators—a pressure vessel used for separating well fluids produced from oil and gas wells.

Referring to the fact that Shadegan Oilfield, located 40 kilometers south of the city of Ahvaz in Khuzestan Province, was discovered in 1968, the official said the field's production capacity reportedly stands at above 500,000 barrels a day, but output is around 60,000 bpd.

Pourhang did not specify whether the Shadegan tender will be open to international contractors for bidding.

Smaller in scale compared to some of Iran's marquee oil and gas projects, Shadegan will not be part of the country's energy contracts that will be presented under a new contractual framework, dubbed Iran Petroleum Contracts.

Iran is taking steps to ramp up crude production capacity, as it tries to recover from years of sanctions that took its toll on its economy, particularly the country's pivotal oil and gas sector.

Officials say increasing output from shared oilfields with Saudi Arabia and Iraq, OPEC's largest and second-largest producers ahead of Iran, is the country's top mission in the post-sanctions period. The policy means domestic fields such as Shadegan are of lower priority in terms of development.

Iran is pumping more than 3.8 million barrels a day, but the country is eying a 14.5% share from the group's total output, which will put its output at around 4.7 million bpd, considering OPEC's current production level.