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MEOG PROJECTS & COMPANIES MEOG

Iran gives Azar production

update as drilling work continues

IRAN IRAN’S Petroleum Engineering and Devel- by Russia’s Lukoil in developing the site. Lukoil
opment Co. (PEDEC) last week said that the pulled out of its 25% stake in the entire Anaran
first development phase of the Azar oilfield has block in 2008/9 after various sanctions by the
reached 97% completion. US and EU countries were imposed, followed
Speaking to the local ILNA media outlet, by the Norwegian company’s withdrawal from
Keyvan Yarahmadi, PEDEC’s manager for the its 75% stake in 2011, after the sanctions were
project said that cumulative output from the field intensified.
had reached more than 30mn barrels, adding Following the announcement of the Joint
that completion would follow shortly, at which Comprehensive Plan of Action (JCPOA) in
point the asset will be fully operational. 2015, various IOCs signed memoranda of
Production was estimated to have averaged understanding (MoUs) for fields in the Anaran
31,000 barrels per day in 2019, and is expected block, either for single or multiple fields, includ-
to reach 65,000 bpd once phase one is complete. ing Norway’s DNO, Thailand’s PTTEP, and Rus-
This early production phase has included the sia’s Gazprom Neft and Lukoil. However, these
drilling of nine wells and the laying of 129 km of were all scrapped when the US backed out of the
pipelines, according to Yarahmadi. deal.
He added that 75% of the equipment used in
this phase was fabricated domestically. PEDEC is Drilling continues
overseeing the development of the field, though The National Iranian Drilling Co. (NIDC)
it is controlled by the Oil Industries’ Engineering announced this week that it had agreed deals to
and Construction Co. (OIEC) and the Oil Indus- for the rental of 16 drilling rigs to five domestic
try Pension Fund Investment Co. (OPIC). companies.
Production will be transported by the 129- NIDC’s parent firm, the National Iranian Oil
km pipeline to processing facilities at Dehloran Co. (NIOC) reported this week that the agree-
oilfield. ments had been signed with Global Petrotech
Azar is located in the onshore Anaran block, Kish Co., Petro Iran Development Co., Pasar-
which covers 3,500 square km. It was discov- gad Energy Development Co., Qeshm Oil and
ered in April 2000 following the block’s award Energy Industries, and Petrotenco Co., all of
to Norsk Hydro in the 1998 licensing round. It which were recently awarded contracts to carry
holds an estimated 2.5bn barrels of oil in place, out work on oil and gas fields in the country.
with combined recoverable oil and gas reserves Reza Dehqan, NIOC’s deputy director for
estimated at 425-475mn barrels. development and engineering affairs, said that
Azar’s crude has an API gravity of 33, but its the rigs would be used to drill wells at the Zilaei,
high sulphur content necessitates the use of spe- Mansourabad, Siahmakan, Ahvaz (phases one
cialised technology and machinery made from and four) and Maroun (phases five and 12).
advanced alloys. Data from OPEC shows that Iran currently
Following the discovery of oil at Azar and the has the world’s second highest active rig count at
nearby Changuleh field, Norsk Hydro was joined 117, behind only the US.™

P10 www. NEWSBASE .com Week 40 07•October•2020