BAKU, Azerbaijan, July 20
By Elnur Baghishov – Trend:
Iran will increase production from the Iran-Iraq joint oil field South Azadegan (the field is called Majnoon in Iraq), by 2.7 billion barrels by applying Enhanced Oil Recovery (EOR) methods, Iranian Oil Minister Bijan Zanganeh said, Trend reports citing the National Iranian Oil Company (NIOC).
He made the remark during the signing ceremony on a contract on the further development of the South Azadegan oil field on July 20.
The minister emphasized currently, it is possible to extract 6 percent of the field's total reserves, while thanks to EOR, production can be increased to 16 percent.
The minister added that with this increase, Iran boosts its revenues by more than $1 trillion.
"Iran's South Azadegan field contains 27 billion barrels of crude oil. With the current production volume, Iran can produce a maximum of 1.5 billion barrels of oil," he said.
Zanganeh stressed that Iran has increased production from oil fields west of the Karun River in the Khuzestan Province from 70,000 barrels to about 400,000 barrels.
The contract on increase of the production capacity of the Iran-Iraq joint oil field South Azadegan to 320,000 barrels per day was signed between Iran’s Petroleum Engineering and Development Company and Iran's Petropars Operation and Management Company.
The 30-month contract is worth $961 million and 11.8 trillion rials (about $281 million). Along with crude oil, the field will produce 200 million cubic feet (about 56.6 million cubic meters) of gas per day.