Page 12 - MEOG Annual Review 2021

MEOG M AY MEOG

Iran makes progress

as it eyes sanctions lift

With momentum building behind talks in Vienna, Iran has increased oil output from several
key fields, while a gas contract award shows Tehran is not willing to wait for foreign help.

IRAN TALKS between world powers are yet to over- The cluster lies along the border with Iraq
come the remaining obstacles to resume the and Iran has prioritised the development of the
2015 Joint Comprehensive Plan of Action shared reservoirs.
WHAT: (JCPOA), but Iran appears to be working on the This week, Iran’s Ministry of Petroleum said
Output from the West assumption that these efforts will bear fruit. that oil output from West Karoun had reached
Karoun oilfield cluster The government, through the National Ira- 420,000 bpd, overtaking efforts from the Iraqi
has increased to 420,000 nian Oil Co. (NIOC), is preparing its oilfields side and up from the 400,000 bpd reached in
bpd as a new export route for a significant upturn in production as it eyes a August last year. This marks an increase of
nears completion. return to global markets. 350,000 bpd since 2013, when President Hassan
Output continues to grow at the key West Rouhani assumed office.
WHY: Karoun cluster in the south-west of the country; Azadegan is understood to be producing
Fields in south-western however, the hesitance of international compa- around 170,000 bpd, Yadavaran 120,000 bpd,
Iran have massive nies to resume talks for field development work Yaran 45,000 bpd and Darkhovin 65,000 bpd,
potential but Tehran must was highlighted by Tehran’s award to a local firm with each of these in the process of being raised
counter poor recovery of a deal to produce gas from an asset previously towards an eventual combined production
rates if they are to held by an Indian consortium. capacity target of 1.2mn bpd.
achieve their potential. The bulk of any production increase from
Karoun update West Karoun is likely to be diverted to the new
WHAT NEXT: A survey from S&P Global Platts shows that Ira- Karoun Transmission Line, the Goreh-Jask pipe-
A contract has been nian oil production rose by 130,000 barrels per line project for which the 300,000 bpd first phase
awarded to local firm day (bpd) in April and NIOC is understood to is now complete. A further development phase
Petropars for the be alternating production from mature fields in will allow for 1mn bpd of crude to be piped from
Farzad-B field, which had order to maintain reservoir pressure. West Karoun to Jask on the Gulf of Oman coast
previously been held by With pressure a key issue affecting recovery for onward export.
an Indian consortium. rates, this comes as little surprise, particularly in With significant progress coming into view
the West Karoun cluster where the average rate on these projects, the outgoing Rouhani admin-
of recovery is 4-6%. Considering that the group istration has achieved a meaningful legacy
of fields, which comprises the Azadegan, Yadav- despite the challenges of domestic politics as
aran, Yaran and Darkhovin fields, is believed to well as the ongoing era of sanctions. Aside from
hold at least 67bn barrels of oil in place (OIP), the progress at West Karoun, gas output from the
increasing recovery from these assets is a pri- supergiant South Pars gas field has risen from
mary concern for Tehran. The average crude 280 mcm per day in 2013 to 750 mcm per day.
recovery rate across Iranian fields is 24%, com- As Rouhani prepares to leave office, there
pared with a global rate of 35%. will be a changing of the guard and this will be

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