Page 58 - IRANRptMay21

9.2 Major corporate news 9.2.1 Oil & gas corporate news
NISOC ramps up production
Iran finalises deals with local firms
The National Iranian South Oil Co. (NISOC) reported this week that it had increased oil production by 30% during the previous six months. Speaking to the official Islamic Republic News Agency (IRNA), NISOC’s managing director Ahmad Mohammadi said that he expects output to grow by a further 10% during the current Iranian calendar year, which started this week. He said that the company intends to raise output to 300,000 barrels per day (bpd) across the 28 fields its operates and to maintain that level of production capacity.
Mohammadi noted that contracts for six packages had been awarded for the first phase of this plan, pegging subsurface progress at these projects at 50%. Surface work was estimated at around 20%.
Meanwhile, contracts have also been signed for a further 19 packages, with only tenders remaining for the Gachsaran and Qala-e-Nar fields, though these are nearing conclusion.
Mohammadi added that work on the Nargesi expansion project, covering a 5,000 bpd production increase, is ready, with three of the first six contracts completed. Meanwhile, two wells will soon expand production capacity at the Lali oilfield.
He said: “By implementing production increase and maintenance plans, a total of 300,000 barrels of oil will be added to the production of south oilfields, and production decline by the same amount will be prevented in these 28 reservoirs.” Around 70% of the project is focused on the south-western Khuzestan Province, with the remainder covering neighbouring provinces.
In early March, the company kicked off engineering, procurement and construction (EPC), and engineering, procurement and drilling (EPD) work for the development of the onshore Siahmakan oilfield under a project that should expand output by around 10,000 bpd.
NISOC awarded a contract to expand production at Siahmakan to Pasargad Energy Development Co. in May 2020, covering field development through an integrated EPD/EPC package.
Iran’s Minister of Petroleum Bijan Zangeneh in January oversaw the signing of eight deals between the National Iranian Oil Co. (NIOC) and local companies to maintain and increase production levels for seven southern oilfields and one offshore asset.
As reported by Middle East Oil & Gas (MEOG), the $1.2bn worth of deals cover the offshore Reshadat oilfield as well as others located in the Bushehr, Fars, Khuzestan, Kohgiluyeh-Boyer Ahmad and Hormozgan provinces.
Deals were signed on behalf of NIOC by subsidiaries National Iranian South Oil Co. (NISOC) and Iranian Offshore Oil Co. (IOOC) and follow a larger raft of 13 contracts awarded in August last year worth an estimated $1.78bn targeting a production increase of 185,000 barrels per day.
The announcement comes as part of a nationwide effort to increase production by 355,000 bpd at a total of 33 fields. Under this umbrella initiative a total of 22 engineering, procurement and construction (EPC) firms have agreed deals for the 33 assets with two yet to be signed.
Some of the same companies picked up contracts in both sets of awards, with the latest round of contracts focusing mainly on smaller assets than those handed out in August.
58 IRAN Country Report May 2021 www.intellinews.com