Page 4 - MEOG Week 22 2021

MEOG COMMENTARY MEOG

Iran’s output push

turns to Azadegan

A flurry of contract activity at Azadegan illustrates
Iran’s ambitious plans for its largest oil assets.

IRAN THE National Iranian Oil Co. (NIOC) this week global rate of around 35%.
signed agreements with five local companies for
studies to expand production from the super- Supergiant studies
WHAT: giant Azadegan oilfield, which is shared with NIOC signed memoranda of understanding
Five companies have neighbouring Iraq. (MoUs) with Persia Oil & Gas Industry Devel-
signed deals for studies The announcement of the studies came just opment Co. (POGIDC) for the northern sec-
at Azadegan, while days after deals were signed for the drilling and tor of the oilfield, with Petropars and PetroIran
Petropars has signed up operation of more wells as Tehran seeks to make Development Co. (PEDCO) for the central
drilling contractors to better use of its largest oil asset. sector, and with independents Pasargad Energy
complete a billion-dollar Development Co. (PEDC) and Dana Energy for
project it began last year. Recovery the southern sector.
Home to around 32bn barrels of oil in place The signing ceremony was attended by Oil
WHY: (OIP) across the Sarvak, Kazhdomi, Godvan Minister Bijan Zanganeh, Supreme Leader Aya-
Azadegan is the largest and Fahilan layers, Azadegan is Iran’s largest oil- tollah Ali Khamenei’s top economic adviser Ali
of the fields that make up field and is split into two development projects – Agham Mohammadi and NIOC CEO Masoud
the West Karoun cluster South Azadegan and North Azadegan. The giant Karbasian.
which feeds the country’s reservoir is shared with Iraq, where it is known as In a statement from NIOC accompanying the
new pipeline and export Majnoon (Insane) on account of its size. announcement, the state oil firm said that if the
terminal that allow it Despite its great potential and more than 170 studies led to further contracts and projects, they
to bypass the Strait of wells having already been drilled on the south- would “boost domestic production and create
Hormuz. ern site alone, recovery factors across the asset extensive employment in Khuzestan Province”.
have slowed progress, with primary recovery In July last year, Petropars and fellow NIOC
WHAT NEXT: rates on the Sarvak layer, which covers around subsidiary Petroleum Engineering and Develop-
The studies will seek to 90% of the field’s reserves, just 5.1% in the south ment Co. (PEDEC) signed a $1.26mn contract to
increase recovery from and 4.5% in the north, according to NIOC. Sec- increase oil production capacity at South Azade-
the supergiant oilfield as ondary recovery rates are around 10% and 2.5% gan from 140,000 barrels per day to 320,000 bpd
production capacity is respectively. by the end of January 2023.
developed over time. Research carried out by the University of The upstream portion of the contract
Tehran’s Institute of Petroleum Engineering in includes drilling 35 wells, installing 50 downhole
2019 suggests that recovery rates from Azadegan ESP pumps and completing eight manifolds. The
could be increased by up to 10% through water midstream part includes a 320,000 bpd central
injection, gas injection and a combination of the treatment export plant (CTEP), two intermedi-
two. ate separation plants, 328 km of flow pipelines,
The issue of low recovery rates is not exclu- 45 km of communication pipelines and 65 km
sive to Azadegan. The North and South assets of gas and crude oil transmission pipelines run-
are key fields in the West Karoun oilfield cluster, ning from the CTEP to the West Karun Pumping
which also includes North Yaran, South Yaran House and the NGL 3200 facility.
and Yadavaran.
Together, the group are estimated to con- Drilling and maintenance
tain at least 67bn barrels of OIP, but the average With 10 of these wells having been contracted to
recovery rate across West Karoun is just 5-6%, the National Iranian Drilling Co. (NIDC), Pet-
with combined production from the fields cur- ropars last week apportioned the final drilling of
rently running at 420,000 bpd. 25 wells under its South Azadegan contract to
Output has increased from just 70,000 bpd Dana Energy and Tadbir Drilling Development
in 2013 and Tehran believes that by increasing Co.
recovery across these fields they can achieve Once complete, these will take the total
1.2mn bpd of combined output. number of wells drilled at South Azadegan to
The broader average crude recovery rate 206, fulfilling the first development phase of the
across Iranian fields is roughly 24%, against a asset, according to Petropars managing director

P4 www. NEWSBASE .com Week 22 02•June•2021