The multi-phased Changuleh field development project is planned to start production by late-2018 and will produce 15,000 barrels per day (bpd) of crude oil, according to a GlobalData report.
Titled ‘Iran Changuleh Project Panorama – Oil and Gas Upstream Analysis Report’, the report states that the initial phase of the project will be completed in three years with an investment of IRR2,336bn ($77m). The first phase of the project will comprise four production wells and workover on two wells that were drilled earlier.
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Petroleum engineering and development company is developing the first phase under a contract awarded by the Iranian Central Oil Fields company in 2016.
Foreign interest in the project has been piqued by the introduction of Iran’s new integrated Petroleum contract with both Russian and Croatian oil companies willing to invest in the next phase of the field development.
A letter of intent has been signed by Russia’s Zarubezhneft, which will evaluate the field and invest in the future development.
The GlobalData report reveals that the second phase of the project will bring the total production to 50,000bpd by adding 35,000bpd to the crude oil production.
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By GlobalDataThe second phase is planned to comprise 14 new production wells. Russian oil company, Lukoil, has also shown interest in participating in the field development. It held a 25% working interest in the Changuleh field up to 2011.
Despite a high operating expenditure, the Changuleh project is still considered a profitable investment with the field estimated to earn a net profit of $1bn if the project is implemented on schedule.
The requirement of a dedicated processing unit combined with low estimated recoverable reserves has pushed the operating expenditure to $8 per barrel.
