Iran Signs $900 Million Deal to Develop Offshore Gas Field
(Reuters) — Iran signed a $900 million contract on Saturday with Iranian Offshore Engineering and Construction Co. (IOEC) to develop the first phase of its Kish offshore gas field in the Gulf, state television reported.
Under the contract, IOEC is to launch production of 28 million cubic meters per day of gas in 14 months, which is to be sent to installations in Assalouyeh on Iran’s Gulf coast via a 210-km (130-mile) undersea pipeline, Mohsen Khojastehmehr, head of the state-run National Iranian Oil Co, told the TV.
The gas field, located near Iran’s Gulf island of Kish, holds 1.5 trillion cubic meters of gas in place and is to be developed in four phases, Khojastehmehr said.
Iran sits on the world’s second-largest gas reserves after Russia, but U.S. sanctions have scared off potential foreign investors, hindered access to technology and slowed development of gas exports.
Yadavaran Oilfield Development to Restart After Six-Year Hiatus
The development of the Yadavaran joint oilfield is expected to resume in the next Iranian year (March 2023-24) with a credit line of $400 million, the director of the development project said.
“The project seeks to increase the production capacity of the field by 42,000 barrels per day,” Mojtaba Moradi Enayat was also quoted as saying by the Oil Ministry’s news service Shana.
“After about a six-year hiatus in development activities, the implementation of the project to increase the field’s output will begin in the first half of next year,” he added.
Moradi noted that the project includes the drilling of 24 wells that will increase the production capacity in this field by about 42,000 barrels per day.
Iran’s daily extraction from the joint field currently amounts to 112,000 barrels.
“The development project will be carried out by Iranian experts and engineers, using domestically-made goods and equipment,” he said.
The Yadavaran hydrocarbon deposit shared with Iraq is located 70 kilometers west of the city of Ahvaz in Khuzestan Province near the Iraqi border.
Based on studies, the field’s in-place crude reserve is more than 34 billion barrels. The reserve’s recovery rate for light and heavy crude oil stands at 15% and 7% respectively. Around 83,000 barrels of Yadavaran production are a blend of light crude and the rest is heavy crude.
