Page 9 - MEOG Week 13 2022

MEOG PROJECTS & COMPANIES MEOG

NIDC kicks off South

Azadegan drilling campaign

IRAN THE National Iranian Drilling Co. (NIDC) Sharifi added: “During the development
announced this week that it has started a 10-well activities, the exploitation of the parts that have
campaign at the supergiant South Azadegan oil- led to the production is also underway in the
field in the south of the country. first phase of [South Azadegan], and at the same
The programme includes the drilling and time, studies of the second phase development
completion of wells under a subcontract from plan have stated on the field.”
Petroleum Engineering and Development Co. The field’s development project is seen pro-
(PEDEC), a subsidiary of the National Iranian ducing 320,000 bpd in the first phase by the end
Oil Co. (NIOC) which was awarded a $1.26bn of the next Iranian calendar year. The second
contract alongside Petropars in 2020 for the first phase is seen adding another 280,000 bpd.
development phase at South Azadegan. This
comprised the drilling of 35 wells, installing 50 Broader investment
downhole ESP pumps and completing eight Capacity expansion at Azadegan is part of a
manifolds. broader investment by NIOC in the develop-
10 of these wells were contracted to NIDC, ment of the West Karoun oilfield cluster which
with Petropars awarding the final 25 wells to also includes the North & South Yaran, Yadav-
Dana Energy and Tadbir Drilling Development aran and Darkhoein fields. Production from the
Co. NIDC chairman Hamidreza Golpayegani region is currently running at around 420,000
said this week that the Fath 28 and Fath 92 rigs barrels per day (bpd).
had been allocated for the project. NIOC CEO Mohsen Khojasteh Mehr said
Home to around 32bn barrels of oil in place this week that South Azadegan phase 2 would
(OIP) across the Sarvak, Kazhdomi, Godvan and be carried out by a consortium of companies,
Fahilan layers, Azadegan is Iran’s largest oilfield while noting that $8bn worth of projects have
and is split into two development projects – been identified under wider investment plans
South Azadegan and North Azadegan. The giant for West Karoun.
reservoir is shared with Iraq, where it is known In October, he told official state energy media
Majnoon (Insane) on account of its size. outlet Shana: “We need around $11bn in invest-
Despite its great potential and more than 170 ment to develop the second phase of the North
wells having already been drilled on the south- Azadegan and Yadavaran oilfields, as well as the
ern site alone, recovery factors across the asset South Azadegan and Yaran.” Comments this
have slowed progress with primary recovery on week suggest the figure has risen to $12bn.
the Sarvak layer, which covers around 90% of the Meanwhile, in early March Iran’s Vice Pres-
field’s reserves, just 5.1% in the south and 4.5% in ident for executive affairs Solat Mortazavi
the north, according to NIOC. Secondary recov- said that headquarters for Execution of Imam
ery rates are around 10% and 2.5% respectively. Khomeini’s Order (EIKO), the Mostazafan
NIDC’s campaign follows comments by Foundation, the government, and Iranian banks
PEDEC’s CEO Abouzar Sharifi in February that would provide $4bn for oil and gas projects in
suggested oil production at South Azadegan Khuzestan.
would increase by around 15,000 bpd at the end These projects are seen raising capacity by
of March. The latest available data showed that 580,000 bpd under the country’s plans to reach
production was running at around 140,000 bpd 5.7mn bpd nationwide by the end of the decade.
last year, while the North Azadegan asset was West Karoun holds an estimated 67bn barrels of
producing another 75,000 bpd. oil in place.™

Week 13 30•March•2022 www. NEWSBASE .com P9