Page 4 - MEOG Week 37 2022

MEOG COMMENTARY MEOG

Iran enlists firms for

Azadegan expansion

Iran’s NIOC has partnered up with several firms with ties to the IRGC
and Ayatollah Khomeini for the expansion of the Azadegan oilfield.

IRAN IRAN this week named the group of domestic (OIP) across the Sarvak, Kazhdomi, Godvan
firms that will accompany the National Iranian and Fahilan layers, Azadegan is Iran’s largest oil-
Oil Co. (NIOC) in the expansion of the Azade- field and is split into two development projects
WHAT: gan oilfield following the signing of a $7bn fund- – South and North. The giant reservoir is shared
Five E&P companies ing deal in July. with Iraq, where it is known Majnoon (Insane)
have joined a group of During a signing ceremony attended by on account of its size.
six banks to form a field President Ebrahim Raisi, Khatam-al Anbiya Despite its great potential and nearly 200
development consortium Construction Headquarters (KAA), the engi- wells having already been drilled on the south-
to be overseen by the neering arm of the hard-line Islamic Revolu- ern site alone, recovery factors across the asset
state oil firm. tionary Guard Corps (IRGC), its subsidiaries have slowed progress, with primary recovery on
MAPNA Group, Oil Industries Engineering the Sarvak layer, which covers around 90% of the
WHY: and Construction (OIEC) and Persia Oil and field’s reserves, just 5.1% in the south and 4.5% in
At 32bn barrels, Gas Industry Development Co. (POGIDC) and the north, according to NIOC. Secondary recov-
Azadegan is Iran’s largest Sina Energy Development Co. were announced ery rates are around 10% and 2.5% respectively.
oilfield and Tehran aims as NIOC’s partners on the project.
to achieve production of Sina Energy is a religious endowment for war Production
almost 600,000 bpd. veterans and the poor, owned by the Bonyad-e While the development of Azadegan has pre-
Mostazafan Foundation and falls under the Exe- viously been split between the north and south
WHAT NEXT: cution of Imam Khomeini’s Order (EIKO). projects, NIOC said that the agreement pertains
The partners will soon In early July, NIOC CEO Mohsen Khojasteh- to the whole field.
establish a joint venture mehr signed a memorandum of understanding Project tracking data compiled by Middle
company to run Azadegan (MoU) with officials from a group of undis- East Oil & Gas (MEOG) shows that South Aza-
under the IPC contract closed financiers, which have now been named degan was running at 140,000 barrels per day
model. as Bank Melli Iran, Bank Mellat, Bank Tejarat, during 2021, with North Azadegan flowing at
Bank Parsian, Bank Pasargad and Bank Shahr. around 75,000 bpd. However, official state media
Home to around 32bn barrels of oil in place have since quoted current total output at around

P4 www. NEWSBASE .com Week 37 14•September•2022