South Azadegan Oil Output Crosses 50,000 bpd Threshold

Iran has met 70% of its production target from South Azadegan Oilfield, a major onshore reservoir in the southern Khuzestan Province near the border with Iraq.

"Oil production from South Azadegan reached 80,000 barrels per day on Sunday," said Touraj Dehqan, an official at the Petroleum Engineering and Development Company (PEDEC) which oversees the South Azadegan development project, Shana reported Monday.

The field's output is planned to reach 110,000 bpd by July, he added. Data show Iran had struggled to increase South Azadegan output to more than 50,000 barrels a day since production began a decade ago.

"Nearly 30 domestic companies have contributed to developing the South Azadegan oilfield," Dehqan said.

Located 100 kilometers west of the provincial city of Ahvaz, South Azadegan is estimated to hold 33 billion barrels of oil in place. It is part of the West Karoun oil block in Khuzestan which holds 67 billion barrels of crude oil.

Tehran wants to tender the South Azadegan project this year in line with plans to raise the field's output to 320,000 bpd in the first phase and ultimately 600,000 barrels daily.

South Azadegan has been singled out as the first of dozens of oil and gas projects which are planned to be developed under a new model of oil contracts, dubbed the Iran Petroleum Contract.

French energy major Total has reportedly submitted a proposal to develop the field. Japan's Inpex and state-owned China National Petroleum Corp are among the potential candidates for the coveted project.