Iran has proved that it has great potential for investment given its abundant and untapped hydrocarbon resources and collaborating with oil majors can help it raise energy output.
Azamat Ismagilov, deputy director of Russia’s state-owned oil company Zarubezhneft, was quoted as saying Wednesday on the sidelines of the 4th Iranian Petroleum and Energy Club Congress and Exhibition (IPEC) in Tehran, October 16-18, the congress news portal reported.
Drawing parallels between Iran's current status and that of Russia in the not too distant past, Ismagilov said there are a myriad of energy projects in Iran that are in the second phase of development and as soon as they become operational, oil and gas output would see exponential growth.
He said Russia was able to boost production after many trial-and-error experiments. Joining hands with oil majors and drawing on the expertise of foreign companies played a key role in developing Russia's oil and gas sectors and augmenting its energy security.
Adopting a similar strategy can help Iran not only have access to modern oil recovery methods, of which it has been deprived for long, but also attract foreign investment, he implied.
Referring to effective production techniques in the energy sector, he noted that electric submersible pump (ESP) systems are among the most cost-effective lift methods of pumping fluids to the surface.
"There are approximately 100,000 wells equipped with ESPs around the world, 70 of which are in Russia," he added, noting that more than 60% of oil wells require some type of assisted lift technology to produce recoverable oil.
Zarubezhneft signed a trilateral deal in March with the National Iranian Oil Company and Dana Energy Company for the development of Aban Oilfield in Ilam Province and West Paydar Oilfield in Khuzestan Province near the border with Iraq.
The initiative is aimed at increasing the fields’ current output from 36,000 barrels per day to 48,000 bpd over ten years.
Founded in 1967, the firm’s activities include design, construction and operation of oil refineries as well as testing and exporting oil recovery enhancement techniques.
