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Iran starts halting oil, gas field expansion projects

Oil&Gas Materials 13 March 2015 16:52 (UTC +04:00)

Baku, Azerbaijan, Mar. 13

By Khalid Kazimov - Trend:

As oil prices diminished drastically, Iran has already made plans to halt 10 drilling projects in the central regions of the country.

It is estimated that the country has lowered its investment in oil and gas fields by $1 trillion, Mehr news agency reported March 13.

Iran's central areas are highly rich in oil and gas resources. Official statistics say that there are 45 gas, 24 oil, and 2 oil-and-gas fields in these areas, holding 8.5 billion barrels of oil and 18 trillion cubic meters of gas.

Ten years ago, it was estimated that the country would produce 500 mcm/d of gas and 500 thousand bbl/d of crude oil out of these areas by now.

However, Iranian Central Oil Fields Co. CEO Salbali Karimi has said that in the company's new plan, it is estimated that production will rise to 400 mcm/d for gas and 400 thousand bbl/d for oil.

Karimi had in a recent report said that the number of drilling rigs in central areas was to diminish in three stages, and maintained that after the first stage is implemented, the number of rigs will reach 12, against the previous number of 22.

Right now six of those have been decommissioned, leaving 16 working rigs in these areas. The report maintained that another four rigs would be put out of operation by spring this year.

Karimi maintained that the basic reason for shutting the rigs down is to save money, adding that the company has so far saved on $54 million.

Edited by CN

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