Huge oil deposit confirmed in southwest Iran
Seismologic studies have verified 30 billion barrels of in-situ oil at the Arvand-Kenar oilfield near Abadan in southwestern Iran, governor of Arvand-Kenar said.
Fars News Agency quoted Latif Hayayi Ahvazi as saying, "An Iranian company and a Chinese firm are making preparations for exploration in the region."
"The first well has been drilled and the preliminary stages of digging two other wells in the field have started," said Hossein Dehdashti, a member of the Majlis energy committee.
Parts of Iran's oil and gas industry could be targeted by an extra layer of European Union sanctions, according to a document prepared for EU leaders, Reuters reported.
Iran has continued developing the field to meet domestic demand.
"We should not be dependent on others (to develop our energy sector). Those who are moody and ... obey their masters' orders not to work with Iran," President Mahmoud Ahmadinejad said on state television.
The comment followed a deal to develop six phases of Iran's giant South Pars gas field was signed between National Iranian Oil Co. and some Iranian companies.
Iran has the world's third-largest proven oil reserves at nearly 138 billion barrels or over 10 percent of the world's total, according to BP's 2010 statistical review. Iran is also the world's fifth-largest oil exporter.
In the gas sector, Iran's South Pars is part of the world's largest reservoir of gas not associated with oil production. Iran shares the field with Qatar which has developed its side of the field and has become the world's largest exporter of LNG.