Iran's South Azadegan oil field dev't requires integrated management - PEDEC

Oil&Gas Materials 30 August 2021 15:19 (UTC +04:00)

TEHRAN, Iran, Aug. 30


South Azadegan oilfield is a megaproject with 206 oil wells and more than 400 pipelines and the biggest refinery units in the country that require cohesive management, said the deputy in the Petroleum Engineering and Development Company (PEDEC), Trend reports citing Fars News Agency.

China previously had the experience of development of Yadavaran oilfield in west Karoun 2008 while CNPC was already responsible for the development of North Azadegan oil field so it was assigned to the development of South Azadegan oilfield, said Nasrollah Zarei.

China's operation in the North Azadegan oilfield was successful and was inaugurated by President Hassan Rouhani in 2015, he noted.

"Major work of CNPC in South Azadegan oilfield was done in 2014 that included drilling 15 oil wells, purchase of cargo and engineering operations and studies of land or reservoirs," he added.

"I can not judge the reason for excluding CNPC from South Azadegan but in my opinion, while Chinese were rejected from South Azadegan development project, the officials should have thought of an alternative contractor for them," Zarei noted.

"Petroleum Engineering and Development Company (PEDEC) became the integrated contractor in the development of the field while the Oil Ministry was waiting for suggestions from Total and Shell companies and the National Iranian Oil Company predicted China's presence in form of IPC," he added.

A total of 110 wells drilled and 65 others will be drilled in the short term while northern and southern gas-oil separation plants (GOSPs) are operating. Petropars company organized tenders to install CTEP units that were annulled, the tender project was won by Italian and Iranian companies before the reintroduction of sanctions that resulted in the Italian company leaving.

Azadegan Oilfield is located in the southwest of Iran, the northern field is situated 120km west of the city of Ahvaz, Hoveyzeh, Khuzestan Province and North Azadegan is in the vicinity of Iraq's Majnoon field. North Azadegan has 5.86 billion barrels of oil reserves and an estimation of 420 million barrels of extractable oil. South Azadegan has 28.2 billion oil reserves and an estimated 1.6 billion barrels of extractable oil.