Iran unveils first oil tenders based on IPC
Baku, Azerbaijan, Oct. 3
By Emil Ilgar – Trend:
Iran has unveiled the names of the first oil fields to be tendered based on newly designed contract model, called the Iran Petroleum Contract, or IPC.
The first tenders would be on the second phase of Yaran field and the Bangestan layer of Kupal field, Ali Kardor, the managing director of National Iranian Oil Company, told Mehr Oct. 2.
Both projects are brown.
Iran has developed the first phase of North Yaran field by 89 percent and production of 30,000 b/d of oil from this field will start in coming months. At South Yaran, Iran produces 5,000 b/d of oil and plans to double that figure in the framework of the first phase.
Iran prioritizes the development of West Karoon block, including North and South Azadegan, Yadavaran and North and South Yaran fields, with 64 billion barrels of in-situ oil reserves, which currently share about 6 percent of the country's total crude oil production.
All of the mentioned fields are joint ones with Iraq.
Iran also produces 94,000 barrels per day of oil from Kupal field.
Kardor said Oil Ministry would sign deals with the Execution of Imam Khomeini's Order (EIKO) to develop Kupal and Yaran fields on Oct. 4.
Therefore, EIKO should find a foreign partner to develop the mentioned projects based on IPC after issuing tenders.
During the sanctions period, which started in 2012, Iran’s oil and gas condensate exports decreased from 3.7 million barrels per day (mb/d) to around 2.8 mb/d, but the figure reached 3.65 mb/d during the post sanctions period, which started in January 2016.
Iran needs about $62 billion investment in energy sector annually from 2015 to 2025, including in up/mid/downstream and energy optimizing projects.
Kardor said Iran plans to increase the oil output to 5.2-5.7 mb/d in the future.
According to him, Azadegan oil field, the oil layers of South Pars and Farzad gas fields are Iran’s priorities in issuing tenders based on IPC.