Page 4 - MEOG Week 33

MEOG COMMENTARY MEOG

Iran continues local contract

awards to raise capacity

Tehran has continued to announce awards to local oil and service companies
as it seeks to ramp up production capacity without foreign assistance

IRAN IRAN this week announced the award of 13 of Ahvaz in Khuzestan Province; the Chalingar
contracts to 14 local companies for field devel- field in Kohgiloyeh and Boyrahmad Province;
opment projects that are expected to expand and for Garangan field, which was discovered in
WHAT: the country’s crude production capacity by Bushehr Province in 1972.
Iran has awarded a raft more than 180,000 barrels per day (bpd) once Persia Oil and Gas Industry Development Co.
of new field development complete. (POGIC) was awarded a contract for the Ramin
contracts to local players. A signing ceremony was held on August 17, oilfield, which is operated by NISOC subsidiary
during which Deputy Director for Develop- Karun Oil & Gas Production Co. The field was
WHY: ment and Engineering Affairs at the National discovered in 1975 and came into production
Tehran is determined Iranian Oil Co. (NIOC) Reza Dehghan said that in 2005. It holds an estimated 5.7bn barrels of
to increase production the deals were for the second phase of a plan to crude, with recovery estimated at 10-15%, and
capacity despite the lack maintain and increase production capacity. the MoP has previously said that 80,000-100,000
of foreign partners. Dehghan noted that of the 13 projects for bpd of production could be achieved.
which contracts were signed, 10 have already Petro Iran Development Co. (PIDC) signed
WHAT NEXT: implemented their first phase, reaching 25% a deal for the Mansourabad oilfield, which
Whether or not it will completion, saying: “Today, the second and third has around 3.7bn barrels of in-place oil in the
accomplish this remains phases of the contract on increasing oil produc- Asmari and Bangestan reserves formations.
to be seen, but given the tion will be signed.” The asset is located 10 km north-east of Behba-
actions of its neighbours, Two of the contracts pertain to the offshore han and is operated by Gachsaran Oil and Gas
Iran is left with little Resalat and Forouzan oilfields, with the remain- Exploitation. Production from the field was most
choice. der for onshore projects in the south of the recently reported to be 6,000 bpd.
country. A contract for the Siahmakan oilfield was
Dehghan noted that the contract values range awarded to Pasargad Energy Development. The
from $41mn-296mn, with the total value of the field is located 40 km north-east of Genaveh in
13 contracts amounting to $1.78bn. Bushehr Province and was discovered in 1974.
He added that corrections had been made Production commenced in the mid-1970s, and
to phase one contracts under the framework reserves are estimated to be 30-40mn barrels.
of engineering, procurement and construc- Contracts were awarded to six development
tion (EPC) and engineering, procurement and projects at the 44bn barrel Maroun oilfield,
drilling (EPD) in order to expedite important which was discovered in 1964, with produc-
work. The deals had been concluded following tion beginning a year later. North Drilling Co.
the implementation of the Joint Comprehensive was awarded deals for the Maroun 1 and 4 pro-
Plan of Action (JCPOA), with work acceler- jects, with Maroun 2, 5 and 6 projects awarded
ated after the US withdrew from the agreement to Petrotenco and Maroun 3 going to the Iran
and doubled down on sanctions on the Islamic Offshore Engineering and Construction Co.
Republic. (IOEC). Maroun and the surrounding Shade-
Meanwhile, Masoud Karbasian, managing gan and Kupal fields are operated by Maroun Oil
director of NIOC, said ahead of the signing that and Gas Production Co., which is a subsidiary
the 13 contract awards form the second part of a of NISOC.
broader move to increase output capacity from The National Iranian Drilling Co. (NIDC)
33 fields to more than 280,000 bpd. and Jahanpars Engineering and Construction
Co. were jointly awarded a contract for the
Onshore Balaroud oilfield, which lies north-east of Andi-
The 11 onshore contracts were signed on behalf meshk city in Khuzestan Province. The field
of the Ministry of Petroleum (MoP) by NIOC was discovered in 2008 and comprises around
subsidiary the National Iranian South Oil Co. 1.1bn barrels, roughly 20% of which are thought
(NISOC). to be recoverable. Production began in 2016 at
Global Petrotech Kish Co. was awarded con- around 10,000 bpd under the operatorship of
tracts for the Zilaei field, which lies 115 km north NIOC subsidiary Masjid Soleiman Oil and Gas

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