Iran offers E&D projects to foreign firms

National Iranian Oil Co. has detailed 24 oil and gas development projects and 17 exploration blocks on offer to foreign investors under buyback contracts.

The Iranian state firm hopes to attract investment amounting to more than $5 billion in the projects-15 onshore and 9 offshore developments and 17 onshore and 11 onshore and 6 offshore exploration blocks.

While U.S. firms are barred from investment in Iran because of trade sanctions, many U.S. firms attended a London conference staged to give details of projects on offer.

Meanwhile, European firms said to be showing interest include Shell Exploration & Production BV, BP Exploration Operating Co. Ltd., and London-based independents Lasmo plc and Monument Oil & Gas plc.

Onshore projects

The onshore projects include expansion or redevelopment in existing fields, application of improved oil recovery techniques, and new developments:

Dehluran oil field, which lies 200 km northwest of Ahwaz near the Iran-Iraq border, is offered for redevelopment. Only three out of 21 wells are in production. NIOC intends to revive output to 20,000 b/d through new wells and enhanced oil recovery. Reserves are estimated at 555 million bbl of oil.
Darquain oil field lies 100 km southwest of Ahwaz and has estimated reserves of 289 million bbl of oil. The field's three wells were abandoned because of poor permeability. NIOC hopes to produce 30,000 b/d from the field through further development and EOR.
Paydar oil field lies 110 km northwest of Ahwaz and was developed with a single well, which flows 910 b/d in summer and zero in winter because of the crude's high viscosity. NIOC has identified 816 million bbl of oil in place so far and aims to produce 10,000 b/d.
West Paydar oil field lies 21 km west of Paydar and straddles the Iran/Iraq border. NIOC estimates reserves on the Iranian side at 190 million bbl. Five wells have been drilled, but only one is producing, at a rate of 3,000 b/d. NIOC aims to develop the field further and apply EOR.
Agha Jari oil field yielded first oil in 1939 and has been developed with 161 wells. Production is currently 200,000 b/d. Out of estimated primary recovery oil reserves of 9.5 billion bbl, NIOC says 8.7 billion bbl has been produced. Now NIOC aims to inject up to 1.8 bcfd of gas from nearby North Pars or South Pars gas fields with the aim of recovering a further 5 billion bbl of oil.
Cheshmeh-Khosh oil field lies 180 km north of Ahwaz and has yielded 120 million bbl out of reserves of 287 million bbl of oil through seven wells drilled to date. NIOC aims to boost output from 9,000 b/d to 80,000 b/d and to inject associated gas and gas from nearby fields to boost oil recovery.
Masjed-e-Suleyman oil field lies 90 km north of Ahwaz, and original reserves of more than 1 billion bbl of oil are 97% depleted. Here, NIOC intends further appraisal followed by further development and EOR work.
Ahwaz area Bangestan reservoirs-Ahwaz, Abteymur, and Mansouri-with combined reserves of 5.83 billion bbl of oil, of which 690 million bbl has been produced, are to be developed further. Gas from Kabir-Kuh reservoir will be injected to boost recovery.
Saadat Abad oil field lies 120 km southeast of Shiraz and has estimated reserves of 41 million bbl of oil. Three wells were drilled, but the field was abandoned. The aim is to redevelop the field and introduce EOR.
Sarvestan oil field, 116 km east of Shiraz, has estimated reserves of 136 million bbl of oil and 450 bcf of gas. Four wells have been drilled and suspended. Now NIOC aims to develop the field with a 20,000 b/d production unit to process crude from Sarvestan and Saadat Abad for delivery to the Shiraz refinery.
Jufeyr oil field in Khuzestan province has estimated reserves of 140 million bbl of oil. NIOC hopes to develop the field, introduce EOR, and lay a 50-km, 8-in. pipeline from Jufeyr to the Abteymur field production unit.
Tang-e-Bijar gas field lies 60 km southeast of Naftshahr near the Iran-Iraq border and has estimated reserves of 5 tcf of gas. NIOC is looking for development of the field for production of about 350 MMcfd of gas for export by pipeline to the domestic grid.
Central Zagos fields-the adjacent Rig, Shoroum, and Dudrou oil finds-lie in the Zagos mountains and have estimated reserves of 274 million bbl of oil.
NIOC envisions their development with a production center and pipeline either to the Isfahan refinery or to an export trunk line.
The nearshore North Pars gas field lies 120 km southeast of the port of Bushehr in the Persian Gulf. Seventeen appraisal wells have been drilled to date, and proven reserves are estimated at 47 tcf of gas. NIOC expects peak production of 4 bcfd, but initially plans to inject the lean, sour gas in Agha Jari and other oil fields.
West Assaluyeh gas discovery lies between Varavi and Kangan gas fields in southern Iran. Estimated reserves are 1.7-5.8 tcf of gas. NIOC intends to evaluate the field further with a view to development for production of 500 MMcfd of gas for domestic use.

Offshore projects

NIOC's offshore project offers include rehabilitation and further development of existing fields as well as new developments:

Nowrooz oil field is slated for rehabilitation and further development. It lies in the northern Persian Gulf and was brought on stream in 1970 but was damaged during the Iran-Iraq war. NIOC envisions renovation and expansion of facilities to produce up to 90,000 b/d. Estimated remaining reserves are 606 million bbl of oil.
Foroozan oil field lies 100 km southwest of Kharg Island straddling the offshore boundary with Saudi Arabia. Production currently amounts to 50,000 b/d, and reserves are estimated at 890 million bbl. NIOC says producing reservoirs can be developed further, while some reservoirs have not been developed and could yield an additional 40,000 b/d,
Salman oil field lies 150 km south of Lavan Island in the Persian Gulf and currently delivers 100,000 b/d. NIOC plans infill drilling, production plant optimization, and water injection. Estimated remaining reserves amount to 430 million bbl.
Sirri C and D oil fields each produces 14,000 b/d, but NIOC plans to boost output to a combined 70,000 b/d with electric submersible pumps, water injection, and infill drilling. Combined remaining reserves are estimated at more than 1 billion bbl.
Hendijan oil field in the northern Persian Gulf produces 8,000 b/d of oil, with output delivered to nearby Bahregansar field for export. NIOC aims to appraise and develop the northern part of the reservoir with a view to raising output to 25,000 b/d.
Soroush oil field facilities in the north Persian Gulf were largely damaged beyond repair in the Iran-Iraq war. Rehabilitation is under way by an Iranian contractor to give output capacity of 60,000 b/d, but NIOC expects to develop the field further and introduce EOR to raise output as high as 150,000 b/d.
Esfandiar pilot project is expected to produce 6,000 b/d through two wells tied back to nearby Foroozan platform. Further development is anticipated, with a target output level of 60,000-70,000 b/d to be sent to Foroozan processing facilities.
South Pars gas field development Phases 4 and 5 are intended to bring a further two 1 bcfd production trains on stream in addition to 3 bcfd already in production or under development. Phase 1 was developed by Iranian firm Pedec, and Phases 2 and 3 were developed by Total.
South Pars field oil reservoir development is under consideration, but details are sketchy. NIOC's gas exploration wells are said to have all discovered light oil in three lower Cretaceous formations.

Exploration blocks

Onshore exploration blocks on offer, and their respective areas, are: Merh, northwest of Ahwaz field, 2,400 sq km; Munir, east-southeast of Gach Saran field, 3,175 sq km; Semirome, east of the Dena Mountains, 1,200 sq km; Anaran, near Dehluran field, 3,500 sq km; Bandar Abbas, near the city of Bandar Abbas, 3,600 sq km; Tabas, near the town of Tabas, 3,830 sq km; Gorgan, southeast of the Caspian Sea, 1,700 sq km; Kashan-Zavareh, in the central Alborz region, 4,080 sq km; Makran, near the city of Chahbahar, 8,000 sq km; Moghan Block 1, near the Azerbaijan border, 1,000 sq km; and adjacent Moghan Block 2, 1,500 sq km.

Offshore exploration blocks on offer and their areas are: Dara, off Abadan, 12,000 sq km; Hormoz, in the lower Persian Gulf, 3,360 sq km; East Kish, in the lower gulf area, 6,290 sq km; West Kish, in the lower gulf, 9,600 sq km; Farsi, bordering Saudi waters, 3,500 sq km; and Qeshm, in the lower gulf, 3,180 sq km.