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IPC model to help boost Iran's recovery rate in southwest oil field

Business Materials 29 July 2017 12:04 (UTC +04:00)

Baku, Azerbaijan, July 29

By Khalid Kazimov – Trend:

Iran is planning to increase its oil recovery rate at the country’s southwestern field of Azadegan through its new model of petroleum contracts.

Oil Minister Bijan Namdar Zanganeh has said that his ministry gives priority to the development of the two oil fields of Azadegan and Yadavaran as well as the oil layer of South Pars under the new Iran Petroleum Contract (IPC) model, Tasnim news agency reported.

The ministry is preparing to hold a tender for the development of Azadegan oil field over the current year, he added.

Zanganeh further said that the ministry is seeking to increase the recovery rate of Azadegan oil field through the tender.

The current recovery rate of the oil field located in southwestern Iran stands at six percent.

While Iran is planning to finalize ten deals within the framework of the IPC over the current fiscal year (starting March 21), the country has already introduced 49 oil and gas fields to be developed under the IPC model over the next five years.

Iranian officials have estimated that the development of the 49 fields would require a total investment of $100 billion of which 80 percent is expected to be lured through the foreign direct investment.

It was earlier announced that the country plans to reach worth of $15 billion deals with foreigners on developing the industry’s upstream sector over the current year.

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