Dividing Iran's biggest oil field causes problems

Iran Materials 8 May 2012 15:09 (UTC +04:00)

Azerbaijan, Baku, May 8/Trend M. Moezzi

The National Iranian Oil Company's decision to carve up Iran's biggest oil field, Azadegan, into different fields has no economic or technical justification and has created headaches for the fields' developers.

Discovered in 1999, the Azadegan oil field is one of the world's biggest. It is 80 kilometres from the city of Ahwaz in Iran's Khuzestan Province, near the border with Iraq, Fars news agency reports.

The National Iranian Oil Company (NIOC) split the field into North Azadegan and the bigger South Azadegan. The Chinese oil corporation CNPC was given South Azadegan to develop, but not all of it. Two sections of South Azadegan are carved away. They are called the North and South Yaran and sit near Iran's border.

The Persia Oil and Gas Industry Development Company plans to develop North Yaran. While the area specified as North Yaran includes Azadegan's oil well number 25, the NIOC says Persia Oil can't develop the well.

NIOC has reduced North Yaran's dimensions to carve away well 25 without Persia Oil's agreement. It plans to turn well 25 over to the Dana Energy Company.