BAKU, Azerbaijan, March 18. A contract worth about $1.04 billion was signed for the development of the Azer oil field (Badra in Iraq), a joint oil field between Iran and Iraq, 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 Sarvak Azer Engineering and Development Company.
The term of the contract is 20 years, and in total, about 177 million barrels of crude oil will be produced from this field.
Within the framework of the contract, 19 new wells will be drilled, 19 wells will be repaired, downhole pumps will be installed, and a number of other operations will be carried out.
The Iranian government's income is expected to equal $7 billion during the period mentioned.
To note, the Azer oil field is located in Ilam province in the west of Iran. The crude oil grade of this field is approximately 30 API. It is reported that the field has 4.4 billion barrels of crude oil reserves.
So far, about 75 million barrels of crude oil have been produced from this field. Production from the field is 30,000 barrels per day.
The National Oil Company of Iran intends to spend 10 million dollars 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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