IOEC Expanding Forouzan As Iran Focuses On Shared Fields Development

The Deputy Managing Director of the Iranian Offshore Engineering and Construction Company (IOEC), Amir Saeed Najafi Haghi told Shana on 29 April that the company has begun to transfer a 4,000 tons platform jacket to the offshore Forouzan field in Iran under its expansion program. He said Forouzan extends into Saudi Arabian waters, where it is known as Marjan. Forouzan has yielded 550mn barrels of oil since production began in the early 1970s and has estimated reserves of 2.3bn barrels. Production peaked at 180,000 b/d in 1978. Currently the Iranian part of the field produces around 40,000 b/d and NIOC aims to increase production by 60,000 b/d, Mr Haghi noted.

The development of shared oil and gas fields is expected to account for 35% of the petroleum ministry’s 2012-13 upstream budget. National Iranian Oil Company (NIOC) Managing Director, Ahmad Qalebani said on April 29: “Development of shared fields is a top priority for the oil ministry. Development of independent fields will be examined only if there are investors or the possibility of signing buyback deals.” He added that Iran intends to sign upstream contracts valued at $25-30bn by the end of the current Iranian year (20 March 2013). During the current five-year plan (2010-15) Iran is looking to invest up to $67bn in the development of shared fields. Petroleum Engineering and Development Company (Pedec) is expected shortly to begin development of the Yaran onshore field, which extends into Iraq.

NIOC estimates that Yaran has 1.1bn barrels of oil in place and could produce 20,000-25,000 b/d over a 24-year period. A first phase of development to give production capacity of 12,000 b/d by the end of March 2014 is expected to cost $600-700mn. Pedec’s intended development partner is Energy Persia, a private company headed by former Iranian petroleum minister Gholamhossein Nozari. He told Mehr News Agency on 30 April that “the first drilling rig will be in place in the Yaran field within the next few days.”

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