Page 4 - MEOG Week 11 2022

MEOG COMMENTARY MEOG

Iran maintains oil

production push

As Iran seeks to raise oil capacity, it is making marginal gains

through the development of assets throughout the country.

IRAN IRAN this week made several oilfield develop- to come on stream within the next week, noting
ment announcements that support the country’s that the additional output is sourced from the
broader production expansion effort. Sarvak layer of the field’s Bangestan reservoir.
WHAT: National Iranian Oil Co. (NIOC) subsidi- Capacity is seen increasing by 10,000 bpd
Projects have been aries said that new wells had been launched at during the first half of the upcoming Iranian cal-
announced for the the Danan oilfield with a contract signed for the endar year, which begins on March 21, noting
development of new expansion of Masjid Soleyman, the region’s old- that the full drilling campaign would add a total
phases at Masjid est field, while a deal has been signed with a for- of 25,000 bpd.
Soleyman and the South eign firm to exploit the oil layer at the supergiant Current output capacity at Danan estimated
Pars Oil Layer, while South Pars gas and condensate field. to be around 31,000-33,000 bpd, which is car-
drilling has added barrels Oil Minister Javad Owji and the NIOC have ried by pipeline to the Dehloran production
at Danan. set a target of expanding national oil production centre where it is sweetened, then pumped via
capacity from the current level of around 3.8mn the 52-km duct to the Cheshmeh Khosh desalt-
WHY: barrels per day to 5.7mn bpd by the end of the ing unit. The field was the subject of a $115mn
Tehran intends to raise oil decade, with investments outlined that amount contract signed between NIOC and PetroViet-
production capacity by to around $145bn. nam in 2008 and the Vietnamese firm had spent
1.9mn bpd by 2030. Around 580,000 bpd of the capacity increase around $20mn on the project before sanctions
is seen coming from the Azadegan, Yaran, curtailed its activities.
WHAT NEXT: Yadavaran and Darkhoein fields, which com- The deal was revived in 2016, focusing on
Major south-western prise the West Karoun oilfield cluster in the the application of enhanced oil recovery (EOR)
oilfields will account for south-west Khuzestan Province, with a budget techniques to target the Bangestan and Asmari
the bulk of the increase, of around $11bn anticipated. reservoirs before the departure of the US
though expansion from the Joint Comprehensive Plan of Action
projects are being Danan (JCPOA) in 2018.
carried out throughout Ramin Hatami, CEO of the Iranian Central Oil
the country. Fields Co. (ICOFC), disclosed that three new Masjid Soleyman
wells have come online at Danan since late Feb- Meanwhile, Petroleum Engineering and Devel-
ruary, adding 5,000 bpd to the asset’s capacity opment Co. (PEDEC) CEO Abuzar Sharifi
under an 11-well drilling programme intended announced that NIOC had signed a memoran-
to maintain and increase the field’s productivity. dum of understanding (MoU) for the Masjid
The official said that another well is expected Soleyman’s second phase of development.

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