BAKU, Azerbaijan, May 17. A consortium on oil production and refining has been formed between Iran’s Pasargad Bank, Bank Mellat, Tejarat Bank and Eghtesad Novin Bank with the participation of Iran's Pasargad Energy Development Company (PEDC), Executive Director of the company Alireza Sadeghabadi told Shana News Agency, Trend reports.
He made the remark on the sidelines of the 26th International Oil, Gas, Refining and Petrochemical Exhibition in Tehran on May 16, 2022.
According to him, a total of $12 billion will be invested for this purpose.
“So that about $5 billion will be invested for the development of the Azadegan oil field,” Sadeghabadi added.
The director noted that in connection with the development of the Azadegan oil field for 4 years, the company has sent a proposal to the Iranian Oil Ministry to produce an additional 250,000 barrels of crude oil per day from the field.
"By spending $2.5 billion in the first stage under the proposal, 110,000 barrels will be added to daily crude oil production from the Azadegan oil field," he said.
Iran's Azadegan oil field is located 80 km southwest of Ahvaz city in the Khuzestan Province (south-western Iran). It is estimated that the field contains about 32 billion barrels of oil. In Iran, this field is usually divided into two parts - North Azadegan and South Azadegan.
Iran's North Azadegan oil field is being developed by the Iranian Petroleum Engineering and Development Company (PEDEC). As a result of development, the extraction from this field will increase by daily 75,000 barrels in the first stage, and by 150,000 barrels in the second stage.
Reportedly, daily 55,000 barrels of oil are extracted from this field at present.
At present, crude oil extraction from Iran's South Azadegan oil field is 85,000 barrels daily. The field contains 28.2 billion barrels of crude oil, of which 1.6 billion barrels can be extracted.
According to the first plan for the development of this field, daily 320,000 barrels of crude oil and 197 million cubic feet (about 7 million cubic meters) of natural gas will be extracted from the field.
According to the second plan, daily 280,000 barrels of crude oil will be extracted from the field. In total, 600,000 barrels of crude oil daily will be extracted from the Azadegan oil field.
“Meanwhile, $7 billion will be spent to build a new oil refinery that can refine 300,000 barrels of crude oil per day. The refinery is planned to be built in the Hormozgan Province (southern Iran),” the official stressed.
Sadeghabadi also pointed out that currently, work is underway to increase the refining capacity of the Qeshm Oil Refinery from 35,000 barrels per day to 100,000 barrels. Due to the increase in refining capacity, the quality of products will also increase.
“At the same time, Iran’s Pasargad Energy Development Company is developing Iran's Sepehr and Jofair oil fields. Thus, the company will start extracting 21,000 barrels of crude oil per day from these fields under an extraordinary basis,” he added.
The director emphasized that in total, 135 wells will be drilled in these fields. In the first stage, the fields will produce 35,000 barrels per day, and in the second stage - 110,000 barrels of crude oil.
In 2018, the National Iranian Oil Company (NIOC) and Pasargad Energy Development Company (PEDC) have signed a contract worth $2.43 million for the development of Iran's Sepehr and Jufair fields.
According to the contract, oil extraction from these fields will be increased by 110 million barrels daily. A total of 512 million barrels of crude oil will be extracted from these fields during the 20-year contract.
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