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Iran to use ‘smart well’ technology to boost oil output

Business Materials 2 March 2015 14:00 (UTC +04:00)

Baku, Azerbaijan, Mar. 2

By Fatih Karimov - Trend: Iran will use 'smart well' technology to boost its oil output.

Amir Abbas Hosseini, deputy director of Iran's Oil Industry Research Center said utilization of smart well technology in the short-term would contribute to an increase in the country's oil output, Iran's Mehr news agency reported on March 2.

The objective of the smart-well system is to maximize value, which could include - increased production, improved reserves recovery, minimized capital and operating expenditures.

Hosseini said that increasing oil output using modern technologies is on the agenda of the National Iranian South Oil Company, the Iranian Offshore Oil Company, and the Iranian Central Oil Fields Company.

The US Energy Information Administration (EIA) reported that Iran's crude oil output, including condensates and natural gas liquids (NGL) stood at 3.236 million barrels per day (mbpd) during the first eleven months of 2014.

The figure indicates an increase by 128,000 bpd compared to the same period of 2013, making Iran third crude producer among the Organization of Petroleum Exporting Countries (OPEC), EIA said in its Monthly Energy Review report published Feb.24.

Iran needs about $30 billion per year to maintain its oil output and for development of oil projects, Deputy Oil Minister Mansour Moazzami said.

Decline in investments has lead to delay and halt in the development projects of the oil industry, Moazzami said.

Some experts believe that the ongoing trend of oil price fall will force Iranian administration to halt its oil and gas projects.

It should be noted by holding 157 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil.

Edited by CN

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