$5.5b in New Oil, Gas Projects in Central Iran

The Iranian Central Oil Fields Company is drafting an investment package for oil and gas projects estimated to value over $5 billion, deputy for planning at ICOFC said.

"Around $5.5 billion worth of projects to develop oil and gas fields and build gas compressor stations are being planned by ICOFC," Shahriar Aqaei was also quoted as saying by the company's website on Saturday.

"The investment opportunities include the development of at least 10 gas fields and construction of compressor stations for five fields in central regions," he added.

A compressor station helps the transfer of natural gas from one location to another.

The investment lineup is made up of mostly small gas deposits that have not been a priority for development, as Iran spends most of its resources on joint oil and natural gas fields in the south and southwest.

The ICOFC projects are to follow a major deal signed with French energy company Total earlier this year to develop Phase 11 of South Pars, the world's largest natural gas field shared between Iran and Qatar in the Persian Gulf.

The official also said plans are in place to develop western oilfields, including Aban, Paydar, Danan, Cheshmeh-Khosh, Dalpari, Naft-Shahr, Dehloran and Khayyam, in Ilam and Khuzestan provinces that share borders with Iraq in the west. He did not elaborate.

"Some 250 projects are being implemented under the supervision of ICOFC, including 200 engineering and construction projects," he said.

Aqaei also pointed to "NGL 3100", an under-development venture to collect associated petroleum gases from oilfields in Ilam. Once operational, the facility will curb the burning of natural gas for injection in Cheshmeh Khosh as a measure to raise the field's extraction rate.

Iran currently produces around 880 million cubic meters of gas per day. Plans are in place to raise output to 1 billion cubic meters per day by March 2018 and reach the 1.3-bcm mark in five years.

South Pars accounts for more than two-thirds of natural gas output but Iran is banking on new supplies from underdeveloped and smaller-scale fields to reach its gas production target.

Iran also pumps 3.8 million barrels of crude oil per day.

According to Oil Minister Bijan Namdar Zanganeh, crude production capacity should reach 4.7 million barrels a day by 2021, though actual output may be lower.

Iran has opened up its energy sector to international companies after the lifting of international sanctions last year. The government says around $200 billion should be spent across the chain of Iran's petroleum industry, with $130 billion required in exploration and production ventures alone.