State-owned oil and natural gas producer National Iranian Oil Company (NIOC) has signed a contract with Persia Oil and Gas Industry Development Company (POGIDC) for the development of the Yaran joint oilfield.
Yaran oilfield is located in the Khuzestan Province of Iran. It is expected to generate $2bn in revenue for the country.
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The agreement is aimed at achieving additional cumulative production of about 39.5 million barrels over a period of ten years.
According to NIOC, the project needs $227m in direct investment and an additional $236m as operating costs.
POGIDC, the developer of the project, is required to raise the funds to develop the field.
Yaran is a deposit shared between Iran and Iraq. It has an estimated 550 million barrels of oil (boe) and is divided into northern and southern parts in the Iranian territory.
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By GlobalDataThe project involves the design of an enhanced oil recovery (EOR) plan, the drilling of six news wells (three in North Yaran and three in South Yaran), a descriptive and a drilling well, as well as the repair of five wells.
It also covers the installation of an electrical submersible pump (ESP) in 27 production wells and the upgrade of ground facilities.
NIOC managing director Masoud Karbasian said that the $300m contract is the sixth under the new petroleum contracts (IPC).
Masoud Karbasian added: “This priority is being pursued despite sanctions, financial problems, and the coronavirus crisis, and this goal will be achieved by the end of the administration.”
In October 2016, NIOC and POGIDC signed an agreement to study the field.
In February, NIOC and energy firm Mapna signed a contract to develop and operate the Parsi and Paranj oilfields in Iran’s Khuzestan Province.
