Iran signs first IPC deal with local company to increase oil field, reserve levels
Looking to attract more foreign investors and boost oil production levels after years of sanctions, the government of Iran has approved the new Iran Petroleum Contract (IPC) which allows non-Iranian companies to participate in oil and gas exploration and development in the country.
National Iranian Oil Company (NIOC), a state-owned oil and natural gas producer and distributor, has recently its first deal under the IPC with local company Persia Oil & Gas Industry Development Co. (POGIDC) to increase the output levels of several Iranian oil fields and reserves.
Under the signed deal, daily crude output of the oil fields North Yaran and South Yaran as well as the Koupal and Maroon reservoirs will be increased up to at least 260,000 bpd (barrels per day) from 185,000 bpd.
In light of the developmental activities of Tadbir Energy Development Group in North Yaran, South Yaran, Koupal and Maroon, the NIOC expects that the crude output of the fields and reservoirs will increase to at least 260,000 bpd from former 185,000 bpd under the deal, said Ali Kardor, NIOC managing director, in the ceremony for conclusion of the Heads of Agreement (HoA) by the NIOC and POGIDC.
Kardor said the four fields have 14.5 billion barrels of on-site oil in their reserves and relying on the current rates of recovery, the amount of recoverable oil reserves in the fields stands at about 2.5 billion barrels.
Kardor also noted that with the use of state-of-the-art technologies for implementing methods for increasing recovery from the four fields, the current recovery coefficient of Yaran field is about 10%, that of Bangestan reservoir of Maroon field at about 9.3%, that of Bangestan reservoir of Koupal oil field at about 13%, and that of Asmari reservoir at more than 18%.
“Today, the HoA of four fields and five oil reservoirs will be signed. Hence, the principles and frameworks of the contract for development of the reservoirs will be clarified and executive works will soon begin,”Kardor said.
He noted that US$2.2 billion needs to be invested in projects for development of the fields, and hoped that POGIDC is as qualified and capable as foreign companies.