Page 9 - MEOG Week 20 2022

MEOG PROJECTS & COMPANIES MEOG

Iran unveils plans for Azadegan expansion

IRAN THE National Iranian Oil Co. (NIOC) said this have slowed progress, with primary recovery on
week that it plans to award a contract for the the Sarvak layer, which covers around 90% of the
expansion of the Azadegan oilfield – comprising field’s reserves, just 5.1% in the south and 4.5% in
projects to develop the South and North sections the north, according to NIOC. Secondary recov-
of the field – to a local consortium. ery rates are around 10% and 2.5% respectively.
Speaking during an industry event in Tehran, South Azadegan is running at 140,000 bar-
NIOC CEO Mohsen Khojastehmehr said: “Fol- rels per day and while the Ministry of Petroleum
lowing the NIOC’s comprehensive programmes (MoP) had previously set a target of 320,000 bpd
for the development of joint fields and maxi- by March 2023, NIOC’s director of corporate
mum use of the capabilities of Iranian compa- planning, Karim Zobeidi, said this week that
nies, the second phase of North Azadegan field’s output would reach 220,000 bpd by that date.
development project and the ongoing project of Despite noting that “increasing production
South Azadegan will be awarded to a consortium from the joint oilfields of West Karun region
comprised of exploration and production com- is a priority for the thirteenth government”, he
panies under a $7.5bn contract.” appeared to suggest that spending would instead
He said that these companies would form a focus on ensuring gas supplies ahead of the
consortium in which they would each have equal winter.
shares. NIOC’s subsidiary’s responsible for the field,
“The final contract is not an exclusive deal Petroleum Engineering and Development Co.
and we do not intend to award the field to just (PEDEC) and Petropars, kicked off a 10-well
one or two companies, but it will be awarded to drilling campaign at South Azadegan in March.
all of them,” he added. The asset is seen producing 320,000 bpd in
Home to around 32bn barrels of oil in place the first phase, with the second expected to add
(OIP) across the Sarvak, Kazhdomi, Godvan and another 280,000 bpd. However, Zobeidi told
Fahilan layers, Azadegan is Iran’s largest oilfield MoP media outlet Shana that the target is now
and is split into two development projects – 570,000 bpd, without clarifying whether the
South Azadegan and North Azadegan. The giant reduction would come from the first or second
reservoir is shared with Iraq, where it is known development phase.
Majnoon (Insane) on account of its size. North Azadegan is further behind in its
Despite its great potential and more than 170 development and is understood to be producing
wells having already been drilled on the south- around 75,000 bpd, having entered production
ern site alone, recovery factors across the asset in 2016.™

Week 20 18•May•2022 www. NEWSBASE .com P9