BAKU, Azerbaijan, July 20
By Elnur Baghishov – Trend:
Iran relies on the potential of local companies in the oil sector, said Bijan Zanganeh Iranian Oil Minister, Trend reports citing Shana news agency.
He made the remark during the signing ceremony on a contract on the further development of the South Azadegan oil field on July 20.
Zanganeh noted that at present, no foreign company wants to sign a contract with Iran in the oil sector, so the country has to rely on the local potential.
The minister emphasized that a contract on the commissioning of the Farzad B gas field will soon be signed with Iranian companies.
Farzad B gas field is one of Iran's joint gas fields with Saudi Arabia. The gas field is contains 614 billion cubic meters of gas and 60 percent of it can be extracted.
Iran has 125 oil fields and 59 gas fields. Iran's total hydrocarbon reserves are estimated at 836 billion barrels.
With available technology equipment, the country can extract 239 billion barrels. Thus, 29 percent of the country hydrocarbon reserves are recoverable, while 71 percent remain underground.
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.