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Iran in talks to develop largest oilfield

Azadegan is the world's third largest oilfield with in-place reserves of about 33.2 billion barrels.

Iran is in talks with foreign and domestic companies for development of its biggest oilfield which the country shares with Iraq, an official says. 

The plan to develop South Azadegan includes producing 320,000 barrels per day (bpd) of oil in the initial phase before raising recovery to 600,000 bpd.

The man in charge of the project, Mahmoud Mar’ashi, said Sunday six domestic and foreign companies have announced readiness to drill 70 wells at the field.

“We are currently in discussions with these companies and reviewing technical issues,” he said without identifying the firms, IRNA reported.

As many as 16 oil rigs are currently spudding 100 wells at the field amid a rush to catch up with neighboring Iraq in production.

“If foreign companies are selected, their operation modality will be similar to that by local companies in the form of two-year usance where each firm will have to dig 20 wells,” Mar’ashi said.

Iran has accelerated drilling of the oilfield since taking it over from the state-run China National Petroleum Corporation (CNPC) which had its $2.5 billion contract cancelled in May 2014 due to repeated delays.

Iraq started producing 210,000 barrels per day from the field which it calls Majnoon in April 2014. The country has awarded the field to a consortium led by the Royal Dutch Shell, targeting a production plateau of 1.8 million bpd.

Iranian officials say early production from the field stands at 50,000 bpd. They hope to make up for the delays and setbacks over the next two years.    

Iran first awarded the development of South Azadegan to Japan’s Inpex in 2001 but had to terminate it after five years due to the company’s inaction.

South Azadegan is the world's third largest oilfield with in-place reserves of about 33.2 billion barrels and recoverable resources of about 6 billion barrels.   


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