Page 5 - MEOG Week 30 2022

MEOG COMMENTARY MEOG

Deal detail announced this week, further expanding the
The deal with Gazprom is clearly the most country’s already world-class resource.
encouraging for Tehran, though it largely follows Malek Shahriati, spokesperson for the Iranian
a 2018 agreement that failed to bear fruit. Fur- Parliament’s Energy Commission, was quoted by
ther detail was provided by NIOC CEO Mohsen the local YJC news agency as saying that a field
Khojastehmehr, who told Shana that the oil ele- holding 1 trillion cubic metres of gas had been
ment entails an investment of $4bn across seven discovered to the north of South Pars. He said
fields. that further exploration efforts were being car-
He highlighted the Paydar and West Paydar, ried out on the asset.
Aban, Dalperi and Cheshmeh Khosh fields, While further detail about the discovery has
noting that the West Oil and Gas Production not yet been provided, NIOC subsidiary Pars Oil
Co. (WOGPC), a subsidiary of NIOC’s Iranian and Gas Co. (POGC) began a drilling campaign
Central Oil Fields Co. (ICOFC) affiliate, would to the north and east of South Pars in late 2021 in
carry out work on behalf of its Russian partners. an effort to add to reserves.
Of these assets, Khojastehmehr said that “the At the time, the company’s head of oil and
two fields of [West] Paydar and Aban are joint gas engineering, Ali Akbar Majed said that the
fields” with their reservoirs crossing into Iraq, first well was “aimed at determining the extent
though each of the assets are located in close of expansion of South Pars gas field in the north
proximity to Iran’s western neighbour. Tehran side of the field and evaluating the potential of
has long spoken of its intention to ramp up out- uncharted areas of this section for development.”
put from the region, watching on as Baghdad The drilling work is being carried out by Ira-
produces significantly more from fields includ- nian Offshore Engineering and Construction
ing Rumaila, Zubair and West Qurna-1 and 2. Co. (IOEC) under POGC’s supervision.
Khojastehmehr added: “Russian companies The find marks the latest in a series of large
did not leave Iran’s oil projects in the circum- discoveries announced by Tehran in recent
stances after the failure of the [Joint Compre- years. In 2019, it found the Eram gas field (538
hensive Plan of Action (JCPOA)], and right now bcm of gas and 385mn barrels of condensate)
they are operating in Iran’s oilfields under sanc- and Namavaran, a 53bn-barrel heavy oil layer
tions using the capacity of domestic contractors.” that extends across the previously discovered
However, Middle East Oil & Gas (MEOG) Ab-Teimour, Darkhovin, Jofair, Mansouri,
understands from local sources that the only Sepehr and Sousangerd fields, adding around
Russian firm currently active in Iran’s oil and 22bn barrels net.
gas sector is ZN Vostok – a subsidiary formed For Iran, though, recovery is a far more
by Zarubezhneft in 2017 which is involved in immediate problem than identifying new
the development of Cheshmeh Khosh and pre- resources. With average recovery rates at south-
viously had agreements in place for West Paydar ern fields understood to run in the region of
and Aban. just 5-8%, it risks leaving huge volumes of oil in
Shortly after the US withdrew from the the ground, hence the push for investment in
JCPOA, control of ZN Vostok was passed to improved and enhanced recovery efforts.
Promsirieimport, a trading unit of Russia’s Min- The $160bn touted is higher than the previ-
istry of Energy. ous $145bn estimate given by officials for the
Output from the oilfields ranges from around development of oil projects and it should be
11,000 bpd at Aban to roughly 62,000 bpd at noted that the latter figure was said at the time
Cheshmeh Khosh. not to include the $80bn needed to maintain and
expand gas output.
Gas find Whichever figure turns out to be correct, Iran
While investment progress appears to be in will need more deals like the Gazprom one if it is
the offing, another major gas discovery was to achieve its output aims.™

Week 30 27•July•2022 www. NEWSBASE .com P5