Project Objectives:
– Improve recovery, development, and increase production from the Aban and Paydar-e Gharb oil fields over a period of 10 years, with a cumulative production increase of approximately 67 million barrels of oil.
– The contract, aimed at enhancing the recovery factor and boosting production and utilization of these fields for a 10-year period, targets a maximum daily production of 48,000 barrels of oil. It is also extendable for up to an additional 10 years by mutual agreement.
– This agreement focuses on the study of the Aban and Paydar-e Gharb fields to expedite the development of these joint fields, following the new model of oil contracts.
Type of Contract:
– The contract for the development of the joint Aban and Paydar-e Gharb fields is an IPC (Integrated Petroleum Contract), signed between the National Iranian Oil Company and a consortium consisting of Zarubezhneft of Russia and the Iranian company Dana Energy.
– According to Shana news agency, this cooperation agreement was signed under the new oil contracts framework with the presence of the Minister of Oil. The signatories included Ali Kardor, CEO of the National Iranian Oil Company, Sergey I. Kudryashov, CEO of Zarubezhneft, and Mohammad Iroani, CEO of Dana Energy
Geographical location:
– Aban Oil Field: A shared field with Iraq located in Ilam Province, 38 kilometers southwest of Dehloran city, between the Cheshmeh Khosh, Paydar-e Gharb, and Dehloran oil fields.
– Paydar-e Gharb Oil Field: Another shared field with Iraq located in Ilam Province, 70 kilometers southwest of Dehloran city, 35 kilometers southwest of the Cheshmeh Khosh production unit, and 150 kilometers northwest of Ahvaz.
– The combined current oil production from these fields amounts to approximately 36,000 barrels per day.
Scope of Work:
– According to the National Iranian Oil Company (NIOC), the primary scope of work finalized for these two fields under the contract includes: conducting engineering studies, repairing and equipping wells with down hole pumps, refurbishing, repairing, and upgrading existing facilities, installing separators, multi-phase flow meters, converting a production well into a wastewater injection well, and other tasks in the first phase. In the second phase, tasks include purchasing and installing oil, gas, and water transfer units, drilling eight descriptive-production wells, purchasing and installing down hole pumps, installing and commissioning permanent separators, conducting 3D seismic surveys, drilling sidetracks, and more.
– The estimated capital expenditures for the development of the Aban and Paydar-e Gharb fields are approximately $674 million (including direct capital costs and the cost of repairing and replacing down hole pumps), with indirect costs estimated at around $68 million.
Job Creation and Technology Transfer:
– The implementation of this project will create significant opportunities for technical employment in the Ilam province, particularly in the workshops focused on the repair and refurbishment of ESP pumps, marking the first time such facilities are established in this region. Additionally, it is anticipated that Zarubezhneft will introduce its technology in the field of enhanced oil recovery in this field, enabling the Iranian counterparts to become familiar with its application and receive the necessary training.
– A memorandum of understanding and a confidentiality agreement for conducting studies by the Russian company on the Aban and Paydar West fields were signed on July 13 of the previous year between the National Iranian Oil Company and Zarubezhneft. During the signing ceremony, Mr. Kudryashov, the CEO of the Russian company, stated that Zarubezhneft’s strategy is to define a unique approach for each reservoir and well, tailored to its specific characteristics, in order to achieve optimal results.
– Since the signing of the study memorandum between the National Iranian Oil Company and Zarubezhneft, numerous meetings have been held between representatives of the two companies to review the progress of their collaboration. Furthermore, the 148th session of the National Iranian Oil Company’s Reservoir Management Advisory Committee, held this February, was dedicated to evaluating the study plans presented by the Russian company.
