Page 5 - MEOG Week 22 2021

MEOG COMMENTARY MEOG

Map showing the
shared Azadegan/Yaran/
Majnoon reservoir along
the border between Iran
and Iraq.

Source: NIOC

Hamidreza Masoudi. facilities while enabling Iran to skirt the Strait of
He told official energy sector media outlet Hormuz chokepoint.
Shana that the 16-month contract with Dana Oil began flowing in late May through the
covers 10 wells as well as engineering and pro- $1.1bn Goreh-Jask pipeline, which will move
curement services. Nine of these are for produc- crude from the West Karoun oilfields, linking
tion and one for discharging effluent, and will the Gulf port city of Goreh in Bushehr Province
add 10,000 bpd to South Azadegan’s production to the Omidieh pumping station, then on to the
capacity. Bahregan and Jask terminals for onward export.
Meanwhile, the agreement with Tadbir cov- Phase one of the 42-inch (1,067-mm) 1,000-
ers engineering, procurement for the drilling of km pipeline covers 460,000 bpd and 254,000 bpd
15 new wells and completion of two suspended of heavy and light Iranian crude respectively,
wells within 20 months. Tadbir, a division of Exe- coming directly from North Azadegan, South
cution of Imam Khomeini’s Order (EIKO), will Azadegan, Yadavaran and Darkhovin, while
drill and complete 10 new horizontal wells, four supply from North Yaran will be moved to a
new vertical wells and one new well for effluent facility at Jofair before onward transportation to
discharge. the West Karoun station and beyond.
Masoudi said that these wells would add a Phase 2 is also underway, which will increase
further 18,000 bpd to production capacity at the capacity of the line to more than 1mn bpd.
the field. In total, the 35-well campaign is antic- Oil this week began filling the 20 storage
ipated to achieve a production capacity increase tanks at Jask Oil Terminal, which have a com-
of 40,000-50,000 bpd. bined capacity of 10mn barrels ahead of the first
Meanwhile, while updates have been scant shipment via the initial 1mn bpd single-point
since 2019, North Azadegan is understood to be mooring (SPM). Both capacities are expected
producing 80,000-90,000 bpd. to increase over time, with storage seen expand-
ing to 30mn barrels and three further SPMs
Export route will increase import and export capabilities and
Tehran’s focus on Azadegan is unsurprising easing reliance on Kharg Island through which
given its importance to the long-planned stra- around 90% of Iranian exports currently flow.
tegic Hormuz bypass export project, which will Meanwhile, the new facilities will come in
make its first shipment later this month. handy as Iran drives oil production higher, with
The project comprises a pipeline and a new Zanganeh saying this week that post-sanctions
export terminal that will ease reliance on existing production could reach 6.5mn bpd.™

Iran’s new Goreh-Jask
crude oil pipeline.

Week 22 02•June•2021 www. NEWSBASE .com P5