Iran’s $1.4bn Deal for Oilfields near Iraq Border

By John Lee.

The National Iranian Oil Company (NIOC) has agreed a $1.4-billion deal to develop two oilfields in Khuzestan, near the border with Iraq.

The National Iranian South Oil Company (NISOC) and Iran’s MAPNA Group signed a ten-year contract within the IPC framework, to improve the recovery rate, increase production and exploitation of the Parsi and Paranj fields.

According to the NIOC, the deal aims to achieve a maximum production of 85000 barrels of oil per day and an additional cumulative production of about 121 million barrels, with an estimated direct capital cost of $ 876.6 million and an indirect cost of $ 235.3 million. Also the cost of exploitation is estimated at $ 269 million.

Work description of this contract includes upgrading and construction of surface installations (operation unit, desalination, gas pressure collecting and boosting facilities, gas injection facilities, flow and transmission pipelines and other related facilities), drilling of new wells and repairing existing wells, split layer operation, gas lift operation, drilling and EOR studies, piloting EOR plans, human resources training, technology transfer, and research and development.

Implementing this plan while increasing the crude oil production capacity of the country, will create widespread employment opportunities in Khuzestan province and also a favorable job market.

Parsi oil field is located in ​​South Dezful, about 125 kilometers from Ahvaz and Paranj Square is located between Karanj and Parsi fields, 75 kilometers from Behbahan and 40 kilometers from Ramhormoz.

(Source: NIOC)

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