BP, NISOC Discuss EOR Projects

Negotiations are underway between the National Iranian South Oil Company and BP on developing four oilfields in the southern oil-rich Khuzestan Province, NISOC managing director said.

"The talks specifically relate to enhancing oil recovery rate at Shadegan, Rag Sefid, Karanj and Parsi fields that comprise nine reservoirs," Bijan Alipour was quoted as saying by ISNA on Tuesday.

According to the official, Iran needs advanced technology to draw more barrels from the said oilfields.  "Negotiations are focused on using advanced knowhow from BP in all development stages including desalination and production."

Regarding funding for developing the four oilfields, he said financial details are being worked out. No further details were available.

"Negotiations have been held with 23 international firms for the oil projects, including Poland's state-run PGNiG and Russian DeNico Consortium."

On the role and importance of domestic firms, Alipour noted that six agreements have been signed with Tehran's Sharif Industrial University, Shiraz University, Islamic Azad University and the Oil Industry Research Institute to help enhance the recovery rate in Ab-Teymour, Bibi Hakimeh and Mansouri oilfields.

Unlike other oil companies that are bound to develop oilfields under Tehran's new contractual framework, known as Iran Petroleum Contract, NISOC will develop oilfields based on a model designed by the company's experts, he said.

The custom framework is said to have the blessing of the Oil Ministry, the government and  parliament.

"The framework of the contract adopted exclusively for NISOC is similar to IPC in repayment terms," he said.

  NISOC Production

Commenting on NISOC output, Alipour noted that the company's production stands at 3.1 million barrels per day including gas condensates and there are plans to increase the volume by 50,000 bpd in the current fiscal year that ends in March 2017. On tackling environmental issues, the official said 41projects worth $240 million are in place to curb the flaring of associated petroleum gases into the environment.

APG is a form of natural gas found in deposits of petroleum. It is often released as a waste product. When it is burned off in flares, it is referred to as flare gas. The flaring of APG is controversial as it is not only a pollutant, a source of global warming, but also a waste of a valuable fuel source.

The gas can be utilized in a number of ways after processing; additionally, it can be both sold and included in the natural gas distribution networks, used for on-site electricity generation with engines or turbines, re-injected for enhanced oil recovery or used as feedstock for the petrochemical industry.