Page 4 - MEOG Week 34 2022

MEOG COMMENTARY MEOG

Iran plans to develop

Esfandiar amid joint field push

The IOOC is set to push forward with the development of an offshore
oilfield where several efforts to begin output have failed to bear results.

IRAN A subsidiary of the National Iranian Oil Co. production transferred to processing facilities at
(NIOC) is planning to begin development work Kharg Island. “Based on the results of a compre-
on the offshore Esfandiar oilfield, which is shared hensive study of the field, the design, construc-
WHAT: with Saudi Arabia, where it is known as Lulu. tion and installation of a well platform and the
IOOC will drill appraisal The first phase of work at Esfandiar will be drilling of four production wells have been pro-
and development wells assigned to the Iranian Offshore Oil Co. (IOOC), posed in the first phase,” noting that an appraisal
at the Esfandiar oilfield, with implementation of the project expected to well would be drilled to support future develop-
which is reported to hold take around three years. Speaking to the Min- ment plans for the field.
around 500mn barrels of istry of Petroleum’s (MoP) Shana news agency Esfandiar is located 95 km south-west of
oil in place. this week, IOOC CEO Alireza Mehdizadeh said: Kharg Island and is estimated to hold in excess
“The plan for the first phase of the development of 500mn barrels of oil in place (OIP) and was
WHY: of the Esfandiar oilfield has been prepared and discovered around 50 years ago, but has never
Efforts to develop approved by the board of directors of the NIOC, been developed despite several attempts.
Esfandiar with local and and the project will be handed over to the con- IOOC signed a $585mn buyback deal with
international partners tractor soon.” PetroIran in 2002 which covered the expansion
have failed to result in The news follows comments in March by of output at the nearby Forouzan field and up to
any significant progress. Tehran that it was preparing to develop its part 4,000 barrels per day from Esfandiar, but this was
of the Arash gas field, which is shared with Saudi halted after the IOOC proposed increasing the
WHAT NEXT: and Kuwait, after those countries pledged to asset’s production to 10,000 bpd then 20,000 bpd
The news follows jointly proceed with work on the asset. over three phases.
announcements earlier in Malaysian NOC Petronas later agreed a
the year that Saudi Arabia Esfandiar’s history of challenges $401mn deal to develop the field, but financier
and Kuwait would look to The first phase entails the installation of a Qatar National Bank (QNB) withdrew its sup-
expand their development platform and the drilling of four production port and the deal collapsed.
of assets shared with wells, with subsea development infrastructure In early 2015, Norwegian services specialist
Iran. to be tied back to the Abouzar platform and EnergyOne – now apparently defunct – was

P4 www. NEWSBASE .com Week 34 24•August•2022