BAKU, Azerbaijan, March 18. A contract worth $260 million has been signed for the development of the Masjed Soleyman oil field, the oldest one in Iran, Trend reports.
An event for signing contracts on a number of oil and gas projects was held at the Oil Ministry in Tehran on March 17.
The event was attended by Iran's 1st Vice President Mohammad Mokhber, Oil Minister Javad Owji, and other officials.
The contract was signed between the National Oil Company of Iran and Sina Energy Development Co.
The term of the contract is 14 years, and in total, about 21 million barrels of crude oil are expected to be produced from the Masjid Soleyman field.
Within the framework of the contract, 15 new wells will be drilled, five wells will be repaired, 70 downhole pumps will be installed, and a number of relevant operations will be carried out.
The Iranian government's income is expected to equal $1.35 billion during the period mentioned.
To note, the Masjed Soleyman oil field, discovered in 1908, is considered the oldest oil field in Iran. This field is located in Khuzistan province, located in the southwest of Iran. The field has a total of 6.3 billion barrels of crude oil reserves.
The National Oil Company of Iran intends to spend $2 million from the income obtained from this field to improve the infrastructure of the province in order to improve the welfare of the region's population.
Additionally, Iran’s total hydrocarbon reserves are estimated at 1.2 trillion barrels. With the available technology and equipment, Iran can extract 340 billion barrels. Thus, 30 percent of the country's hydrocarbon reserves are recoverable, while 70 percent remain underground.
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