Yaran joint oil field development project includes the development and integration of the North Yaran and South Yaran onshore fields located on the Iran and Iraq border.
The National Iranian Oil Company (NIOC) signed an agreement with Persia Oil and Gas Industry Development Company (POGIDC) for the joint development of the South Yaran and North Yaran oil fields in July 2020.
The development agreement follows a previous agreement signed in October 2016 between the two companies to study the fields.
The Yaran joint oil field will be developed with a direct investment of £180m ($227m) and at an operating cost of £187.11m ($236m).
Location and geology details
The Yaran joint oil field is located 130km southwest of the Ahvaz field and west of South Azadegan field in the Khuzestan province of Iran. The oil field is shared with the Majnoon field in Iraq.
The field reservoir is of the Sarvak formation extending 48km in length and 2.5km in width.
North Yaran and South Yaran oil field development background
Yaran oil field was discovered through the drilling of an exploratory well in 2009 for evaluation of hydrocarbon potential and study of Azadegan oil field extension limits. The well resulted in the discovery of oil and gas reserves that divided the field into North Yaran and South Yaran oil fields.
The North Yaran oil field was awarded to POGIDC through a buyback contract in 2012. Situated next to South Azadegan oil field and near the Jofeyr and Yadavaran oil fields, North Yaran commenced operation in 2016. It produced 30,000 barrels per day (bpd) of crude oil during the first phase of development.
The oil field development comprises of one appraisal well and 19 producer wells. The field infrastructure includes wellhead facilities, flowlines, cluster production unit, and oil and gas transport pipelines.
The contract for the South Yaran oil field development was awarded to Petroleum Engineering and Development Company (PEDEC). Located 130km west of Ahvaz, southwestern Iran on the Iranian-Iraqi border, the field commenced operations in 2017. It produced 10,000bpd of crude oil in the first phase.
The field includes six wells and a mobile oil separation system. While Iraq recovered 200,000bpd of oil, it is being developed in Iran for production of approximately 60,000bpd of crude oil.
Yaran joint oil field development details
The joint development of the Yaran oil field includes the drilling of six news wells - three in the North Yaran field and another three in the South Yaran field. It also includes the drilling of a descriptive well and a well for water injection.
Further, 27 production wells drilled in the Sarvak layer will be equipped with electrical submersible pump apart from the construction and upgrade of ground facilities. The project also involves conducting laboratory studies and designing enhanced oil recovery (EOR) methods.
The project aims to explore and achieve 39.5 million barrels of oil within a period of ten years. The field estimate to holds approximately two billion barrels of in-situ crude oil reserves.
Mahadas Iranian, through subsidiary company Bien Company, was contracted to provide core and pressure volume temperature (PVT) analysis services for 19 wells at the North Yaran oil field.
Pars Drilling Fluids (PDF) was contracted by POGIDC for drilling four wells at North Yaran oil field between 2013 and 2015.
Pars Kayhan was engaged by PEDEC for engineering, procurement and construction work of wellhead facilities and pipeline at South Yaran oil field.
Mapna Group was engaged for supervision of engineering services and reservoir studies for development of South Yaran field and seismic studies at the North Yaran field.