November 2004
A fully detailed Project Tracker database, which contains cumulative information on Balal, Douroud, Esfandiar and Forouzan, Sirri A and E, South Pars, Soroush and Norouz, Salman, Azadegan, Cheshmeh Khosh, Darkhovin, Masjed Soleyman, Yadavaran, Anaran, Munir, Mehr, and Zavareh-Kashan is available and free to all Iran Energy Focus subscribers.

Soroush/Norouz

PEDEC managing director Abolhassan Khamoushi said on 6 November that the project to increase the production at the Soroush/Norouz oil field from 60,000 to 200,000 bpd will become operational by mid- January.

Yadavaran

Petroleum Minister Zanganeh said on 2 November that if Iran's MoU with Sinopec over the Yadavaran oil field is finalised and leads to the signing of a deal, the tender for development will be cancelled and the 51 per cent of the project reserved for a foreign company will be handed over to the Chinese.

Remarking on whether Iran would cancel its proposal to award a 20 per cent stake at Yadavaran to India after the recent MoU with China, Zanganeh said the proposal will still be viable if India succeeds in concluding a gas deal with Iran "given that Iran will be in charge of 49 per cent of the project" and can award parts of that to other companies.

Meanwhile, PEDEC deputy director Ali-Akbar Vahidi Al-e Aqa announced on 31 October that the tender proposals for the Yadavaran field would soon be studied. Al-e Aqa had on 25 October confirmed that Norway's Hydro and Statoil are among those competing in the tender. An informed source at PEDEC told Iran Energy Focus that the company will continue to perform its responsibilities in the Yadavaran tender, independent from new developments borne out of the MoU with Sinopec.  

Binak

NISOC announced on 3 November that the project to collect associated gases at Binak oil field had registered progress of 95.48 per cent by 21 October and that the project is about to be launched. Binak project manager at NISOC, Abdolhossein Ashtari, said that the project will be delivered to the Gachsaran Oil and Gas Production Company in early January 2005.

Sarajeh

OEOC announced on 3 November that the Sarajeh gas storage project in Qom province will come onstream by late November. The company added that the project is capable of storing 1.5 bcm of gas piped from South Pars and that the gas is to be supplied to Iran's northern areas during the winter, when gas consumption increases seven-fold.

PROJECT TRACKER

Azadegan NIOC exploration director Mahmoud Mohaddes said on 16 October that 3D seismography at the Azadegan oil field had ended and that the NIOC is currently processing the information obtained. Azadegan project manager Naji Sa'douni said on 1 November that operations to develop the field will start next March after mine-sweeping operations in the region are finished. Sa'douni also said on 8 November that the winners of tenders relating to construction operations of the first phase of the project will be named by mid- March 2005.

Darkhovin

Director for drilling operations at Darkhovin oil field Ata'ollah Esfandiarpour said on 1 November that drilling operations on wells 1112 and 1113 at the field will be completed next month.

Esfandiarpour said 12 more wells are set to be drilled by the end of 2005. Also, PEDEC deputy director Al-e Aqa announced on 6 November that the second phase of the development project for the field has progressed by 15 per cent and is ahead of schedule.  

Salman

Petro Iran reported on 17 October that the progress of physical and detailed engineering operations at Salman oil field has reached about 97 per cent. Petro Iran also reported on 27 October that the overall progress of the Salman development project stands at 5.35 per cent over the month ending 1 October, adding that this is 1.55 per cent ahead of the projected figures. The company added that the progress of the whole project currently stands at above 55 per cent.

Aran/Bidgol

The NIOC Exploration Department announced on 26 October that Sinopec has finished seismographic operations in the Aran and Bidgol oil fields.  

Zavareh-Kashan

The Zavareh-Kashan project manager announced on 29 October that the second project well had been completed at a depth of 3,351 metres. He added that the first well, known as Aran, was drilled to a depth of 3,961 metres and has yielded positive results and that testing the second well, known as Fakhreh, is underway.

Kuhestan-2

The NIOC announced on 26 October that 2D seismographic operations in the Kuhestan-2 project, carried out to a depth of over 3,000 metres, have come to an end.

Mansouri

The NIOC Exploration Department announced on 9 November that it has started planning 3D seismography operations in the Mansouri oil field and will complete the planning in two weeks. At that point, the department will carry out the seismography operations in cooperation with PEDEC.

Amak

NIOC senior planning expert Mohammad Khatiri said on 26 October that the first phase of the Amak project will be ready for production by mid-November. This project aims at preventing the flaring of 6.82 mcm gas per day worth more than $210 million per year.  

Forouzan

Petro Iran reported on 29 October that the stake of Iranian companies in Forouzan oil field has surpassed 35 per cent. The report added that investments for the development of the oil field have so far been $245 million, of which $75 million has been borne by domestic companies.

Kerenj/Parsi

Studies on the Parsi oil field show that production of crude oil can increase by 50 per cent to 150,000 bpd. Similar studies on the Kerenj oil field have proven that its recovery factor can increase by 10 per cent to 55 per cent through injecting 11 mcm of natural gas.  

Bibi Hakimeh

The NIDC announced on 23 October that drilling of Bibi Hakimeh well no. 130 has been completed. This comes while the NIOC Exploration Department on 9 November announced that planning 3D seismography operations at Bibi Hakimeh has finished and that NISOC has been commissioned to carry out the operations.

Koupal/Aghajari/Maroun

The Chinese company BJP has commenced seismography operations in Koupal, Aghajari, and Maroun oil fields, the press reported on 23 October.

Varavi/Shanol/Homa

The South Zagros Oil and Gas Operations Company announced on 21 October that the development phases of Varavi, Shanol, and Homa gas fields have finished. The company added that development of the three gas fields will be carried out in two phases, the first to start in March 2006 and the second in 2007.

Aghajari

Aghajari gas injection operations manager Yousef Davoodi said on 20 October that gas injections are 70 per cent complete. Davoodi added that $150 million is required for implementation of the project and that $120 million has so far been provided.

Paydar/Maleku/Serkan

The NIDC announced on 20 October that the drilling of wells in the Paydar, Maleku, and Serkan fields in Ilam and Kermanshah provinces, which started in late September, has progressed 15 per cent.

Kaboud

The Masjed Soleyman Oil and Gas Production Company announced on 12 October that Kaboud oil field had boosted its total production by 4,000 bpd. Its production currently stands at an average of 116,000 bpd, although the target was initially projected at 100,000 bpd.

Iran Mehr

Local media reported on 14 October that a project for collecting data on the Iran Mehr oil block in Persian Gulf waters has finished.

Changuleh/Dezfoul

The NIOC announced on 18 October that it is planning to hold a tender for seismographic operations in the Changuleh oil field and the Dezfoul region.  

Khorramabad block

NIOC explorations director Mahmoud Mohaddes said on 14 October that the NIOC had received proposals for developing the Khorramabad block - one of 16 oil blocks that Iran offered to international companies on an E&D basis. Mohaddes said eight companies had submitted proposals for exploration and development of the block, which is located in western Iran.  

Kish

NIDC manager of special projects Hamid Bovarrad said on 30 October that the company has started exploration operations for drilling two wells on Kish Island. Bovarrad added that the NIDC has signed an agreement with the NIOC Exploration Department to carry out the project by using the Fath 67 rig. He added that the first well will be drilled in a year and potentially a second after considering the results of the first.  

South Pars

Petropars, IOC sign MoU to bid jointly Petropars managing director Gholamreza Manouchehri said on 5 November that his company has signed an MoU with the Indian Oil Corporation (IOC) to bid jointly for the development of one of the South Pars phases. Manouchehri did not mention which project but remarked that it has been estimated at some $3 billion.

An informed source at Petropars told Iran Energy Focus that the MoU includes general issues relating to Petropars-IOC cooperation in Iran's gas sector. The source added that India is trying to encourage Iranian supplies for its domestic gas market and also wants to enter international gas markets by using the facilities of Iranian companies.

Phase 1

POGC managing director Assadollah Salehiforouz said on 4 November that President Khatami will inaugurate South Pars phase 1 in late November, noting that a final date for the ceremony will be fixed by the Presidential Office.

NIOC
managing director Mehdi Mirmoezzi said on 16 October that South Pars phase 1 is set to become operational by the end of December, after a two-year delay. South Pars phase 1 project manager Rahim Tabrizi said on 1 November that Iran has received over $320 million in revenues since the implementation of South Pars phase 1 in February 2004. Tabrizi also said on 6 October that the quality of natural gas produced at South Pars is higher than expected.

Reservoir studies have shown that the aromatic content of South Pars gas is three to four times above projected estimates, adding that this will greatly increase the quality of the gas produced at the phase.  

Phases 2 and 3

The POGC announced on 9 November that it has exported the 159th consignment of gas condensates at about 642,000 barrels from South Pars phases 2 and 3, bringing total exports of condensates from the phases to some 70 million barrels.  

Phases 4 and 5

Petropars announced on 6 November that the second unit of the refinery for South Pars phases 4 and 5 had been made operational. The refinery will have a daily production capacity of 1 bcm of gas when the two units operate in full swing. Petropars also announced on 15 October that the phases had progressed by 92.85 per cent by 21 September.

The offshore portion progressed by more than 93 per cent and more than 99 per cent of operations related to the offshore parts were complete.

Eni reported on 28 October that it had successfully started production at South Pars phases 4 and 5. The company added that the phases will initially produce 14 mcm of gas per day and at full capacity will reach 58 mcm per day.

Phases 6, 7, 8

POGC managing director Salehiforouz said on 4 November that pipe-laying operations in the offshore section of  South Pars phases 6-8 have started and are progressing at a pace of 3 to 3.5 km/day. Petropars managing director Manouchehri said on 4 November that the progress of the phases was registered at 46 per cent by 21 October. Manouchehri also said on 13 October that his company has set up a new department to make sure that the 51 per cent share of Iranian companies in development of South Pars phases 6-8 is observed. The POGC announced on 26 October that Statoil has finished installing a second jacket in the offshore sector of the phases. This appears to be repetition of old news, since Statoil completed that job last May. On the same day the POGC also announced that construction of platforms for the phases had progressed by more than 45 per cent and of the upper installations of the platforms by 45.73 per cent.

Phases 9 and 10

The POGC announced on 4 November that construction of the refinery for phases 9 and 10 had begun. The OIEC announced on 2 November that it had ordered the construction of a large part of its required structures for developing the offshore part of the phases: a wellhead platform, two flare platforms, and two 32-inch pipelines for each of the phases.

OIEC
managing director Ali Dana said on 25 October that land preparation for the phases is on schedule, having progressed by 93 per cent. 

Phase 11

NIOC managing director Mirmoezzi said on 16 October that Iran is finalising a deal to award South Pars phase 11 to Total, remarking that talks are making good progress.

Phases 15 and 16

Salehiforouz said on 4 November that proposals for the tender for South Pars phases 15 and 16 have been finalised and the results are likely to be announced soon.

© Menas Associates 2004