Contract signed to increase oil production in Iran

Oil&Gas Materials 20 July 2020 12:23 (UTC +04:00)
Contract signed to increase oil production in Iran

BAKU, Azerbaijan, July 20

By Elnur Baghishov – Trend:

A contract has been signed in Khuzestan Province (southwestern Iran) to increase the production capacity of Iran-Iraq joint oil field South Azadegan (the field is called Majnoon in Iraq), to 320,000 barrels per day, Trend reports citing the National Iranian Oil Company (NIOC).

According to the report, the contract was signed by Touraj Dehghani, executive director of Iran’s Petroleum Engineering and Development Company (PEDEC), and Hamidreza Masoudi executive director of Iran's Petropars Operation and Management Company (POMC).

The 30-month contract is worth $961 million and 11.8 trillion rials (about $281 million).

“Along with crude oil, 200 million cubic feet (about 56.6 million cubic meters) of gas will be produced daily, according to the contract,” the report said.

Under the contract, 35 wells will be drilled, 50 in-well pumps will be installed, and a total of 438 km of pipelines will be laid.

“The two companies also signed a contract to build a Central Treatment Export Plant (CTEP) to process 320,000 barrels of crude oil per day,” the report said.

According to the report, the 30-month contract is worth $300 million.

The South Azadegan oil field is part of the Azadegan oil field. The South Azadegan oil field is located 80 kilometers from the Ahvaz city in the Khuzestan Province on the border between Iran and Iraq. The area of the field is 1125 square kilometers. The field contains about 27 billion barrels of crude oil, of which 1.7 billion barrels can be extracted.