The companies aims to achieve additional cumulative production of about 39.5 million barrels over 10 years in the field
The contract pertains to the development and integrated operation of the oilfield. (Credit: National Iranian Oil Company (NIOC))
The National Iranian Oil Company (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.
The contract pertains to the development and integrated operation of the oilfield and follows a heads of agreement (HoA) signed by the two companies in 2016 to study the field.
The Yaran oilfield is expected to generate $2bn in revenue for Iran.
NIOC stated: “Implementation of this development project, which has been carried out by relying on domestic capacity and capabilities, enhances the country’s crude oil production capacity, and maximizes the use of domestic potentialities, ensures business boom in the southwestern province of Khuzestan and generates jobs for local manpower.”
Under the agreement, the companies aims to achieve additional cumulative production of about 39.5 million barrels over 10 years in the field.
The targeted production from the oilfield is planned to be achieved through a capital expenditure of $227m and operating costs of an estimated $236m.
NIOC stated that the all the required financial resources for the project implementation will be provided by the project developer.
Development of Yaran joint field will involve drilling 6 new wells
Located 130km southwest of Ahvaz and west of South Azadegan field, the development of Yaran joint field will involve drilling 6 new wells, drilling a descriptive well, drilling a well for water injection and workover operations in five wells.
It will also include equipping 27 production wells in Sarvak Layer with ESP pump, constructing and upgrading ground facilities, conducting laboratory studies, and designing the enhanced oil recovery (EOR) method.
The Yaran development will be carried out in two sections, with the drilling of three wells in North Yaran and three others in South Yaran.