Iran awards contracts in move to add 400,000 bopd

Iran

TEHRAN, March 18, 2024 – The National Iranian Oil Company has awarded contracts to domestic companies for projects aiming to boost production at several oilfields near the Iraq border by 350,000-400,000 bopd, Argus reported on Monday.

The largest deal, valued at USD 11.5 billion, is for the development of the giant onshore Azadegan oilfield, which holds an estimated 26 billion barrels of proven oil reserves.

The contract was awarded to Dasht Azadegan Arvand, a consortium of nine domestic E&P players and banks.

Citing a 2022 preliminary agreement between NIOC and Dasht Azadegan Arvand, Argus said the plan calls for output to be increased from 205,000 bopd to 550,000 bopd.

Another major contract, valued at USD 1.36 billion, was awarded for the development of the Azar oilfield by Sarvak Azar Engineering and Development.

The Azadegan oilfield shares a reservoir with Iraq’s Majnoon field, while Azar shares a reservoir with Iraq’s Badra field.

The NIOC plans to increase Iran’s oil production to 5.5 million bopd by 2031 and to maintain this level until 2041, expecting to spend around USD 150 billion.

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