Zarubezhneft Submits Development Plan for Iran's Shadegan Oilfield

State-run Russian oil company Zarubezhneft has submitted the result of its technical survey on Shadegan Oilfield, a reservoir in the southern oil-rich Khuzestan Province, to the National Iranian South Oil Company.

“In addition to Zarubezhneft, two other enterprises, namely Pergas Consortium and Tenco, are expected to present their proposals for Shadegan Oilfield near the city of Ahvaz next week,” Hamid Deris, NISOC's manager for technical affairs, was quoted as saying by Shana, the Oil Ministry’s official news agency, on Wednesday.  Pergas Consortium includes 11 international oil and gas companies, while Tenco is a subsidiary of Khatam-al-Anbiya construction group affiliated to the Islamic Revolution's Guards Corps.

Pasargad Energy Development Company, Russia's Tatneft and Schlumberger, the world's leading oilfield services provider, have also signed agreements to survey the oilfield.

Shadegan Oilfield is 60 kilometers south of Ahvaz. It was discovered nearly half a century ago and started production in 1988 following the end of the eight-year Iran-Iraq war. Production from the field is now reportedly at 70,000 barrels a day.    

According to reports, NISOC has opened talks with BP Plc to enhance the rate of recovery from Shadegan, Rag Sefid, Karanj and Parsi fields.

Zarubezhneft has discussed with NISOC ways of raising production from Aban and West Paydar oilfields shared with Iraq in four to six months.

“Iran not only intends to cooperate with the Russian firm for financing oil projects, but also aims to employ the company's cutting-edge technologies,” he added.

Zarubezhneft is a Moscow-based oil enterprise that specializes in exploration, development and operation of oil and gas fields. According to experts, the increasing political and economic alignments of Tehran and Moscow in recent years could translate into the extensive presence of Russian companies in Iran's lucrative energy sector.

Iran's petroleum sector needs $200 billion in new investments, most of which are expected to come from foreign sources. Years of economic restrictions imposed over Tehran's nuclear program deprived Iran's key petroleum industry from finance and technology.