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Iran to drill Caspian Sea oil field's second well

Oil&Gas Materials 15 July 2012 14:01 (UTC +04:00)
Iran will drill a second well in the deep waters of the Caspian Sea’s Sardar-e Jangal gas field.
Iran to drill Caspian Sea oil field's second well

Azerbaijan, Baku, July 15/Trend M. Moezzi

Iran will drill a second well in the deep waters of the Caspian Sea's Sardar-e Jangal gas field. The well is exploratory and will provide information about the field's existing well while new layers will be drilled into for exploration, Shana news agency reports.

Ali Osuli, the Khazar Exploration and Production Company's (KEPCO) managing director said Sardar-e Janga's discovered layer holds reserves totaling two billion barrels of light crude oil, 500 million of which is extractable. If the per barrels price of oil is calculated at $100 (USD) the field's on layer would net Iran $50 billion.

KEPCO's chief also emphasized that Sardar-e Jangal is an oil field, not a gas field as first announced. The Caspian Sea field's oil reserves are greater than its gas reserves. Mr. Osuli said his company's ready to move ahead with developing the field but time and money are needed to do so. Although no exact costs have been determined yet, work in deep waters will need a substantial investment.

Meanwhile KEPCO is working with authorities in the Gilan Province to plan the field's onshore support operations.

The Iranian Oil Ministry announced in December 2011 that Iran could discover huge gas reserves (1.4 trillion cubic meters) in a 700-metre depth of the Caspian Sea. Then on May 10 it was announced that this field has a huge (eight billion barrels) oil reserves as well. Iran says the oil crude deposit in this (Sardar Jangal) field is worth $50 billion reserves.

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