The oilfield is located in the West Karun region, near the Iraqi border and about 80km west of Ahvaz


The South Azadegan oilfield is located in the West Karun region. (Credit: John R Perry/Pixabay)

Iran’s Petroleum Engineering and Development Company (PEDEC) has awarded a $1.26bn contract to Petropars Group to complete the development of the South Azadegan joint oilfield.

The oilfield is located in the West Karun region, near the Iraqi border and about 80km west of Ahvaz.

Under the contract, Petropars will also be responsible for the construction of a 320,000 b/d central treatment export plant (CTEP) at Azadegan. The contract for the plant is worth $300m.

Expected to be built within 30 months, the plant is claimed to become the largest oil and gas processing unit in the country.

The South Azadegan oilfield, which was producing only 45,000 barrels per day (bpd) back in 2013, has a production capacity of 140,000bpd.

More than 171 wells have been spudded in the field, apart from building 2 separators, 257km of flow pipelines, 90km of transmission pipelines and 23km of communication pipelines.

South Azadegan oilfield will have 320,000bpd capacity after completion of the development

PEDEC has signed the contract with Petropars to increase the daily production capacity of the field to 320,000 barrels of crude oil in 30 months.

The development will include drilling 35 wells, installation of 50 downhole ESP pumps, completion of 8 manifolds, completion of two intermediate separation plants, and construction of 328km of flow pipelines.

In addition, it will also consist of 45km of communication pipelines and 65km of gas and crude oil transmission pipelines from the CTEP to the West Karun Pumping House and NGL 3200.

The current capacities for Azadegan oil refining include the West Karun Exploitation and Desalination Unit and the Skid Mounted Processing Unit.

The construction of CTEP is expected to increase the field’s processing capacity.

The development of the joint field will involve 206 wells.

In 2014, the National Iranian Oil Company (NIOC) signed a deal with a Chinese company for the development of the South Azadegan joint field.

NIOC expelled the company after it failed to complete the project.

Recently, NIOC has signed a contract with Persia Oil and Gas Industry Development Company (POGIDC) for the development of the Yaran oilfield, located in in the Khuzestan Province of Iran.