NIOC Signs 8-Billion-Dollar MoUs with Iranian Firms to Develop Joint Oil, Gas Fields
Mohsen Khojasteh Mehr, the head of the NIOC and deputy oil minister, told reporters that operational steps will be taken in line with the maximum development of the oil and gas fields.
He added that over the past few weeks, petrochemical companies invested heavily in constructing 20 gas reservoirs, valued at $7 billion.
The NIOC will provide Iranian companies with the necessary facilities to add 85 million cubic meters of gas to the existing capacity, Khojasteh Mehr said.
The MoUs, valued at $8 billion, were inked on the 3rd day of the 28th Iran International Oil, Gas, Refining and Petrochemical Exhibition dubbed Iran Oil show 2024 between the National Iranian Oil Company and Iranian production and exploration companies, aimed at the daily production of 200,000 barrels of oil and 85 million cubic meters gas and per day.
In a relevant development in April, Iran inked several contracts worth over $13 billion to develop six oilfields at the presence of Oil Minister Javad Oji and First Vice-President Mohammad Mokhber.
“Today, we are honored to sign one of the most important and largest oil contracts,” said Khojasteh Mehr who was also present in the endorsement ceremony.
The contracts, inked on the occasion of the 73rd anniversary of the nationalization of the Iranian oil industry, are aimed at developing six oil fields and adding 350,000 barrels of oil to the country’s daily production by relying on domestic expertise.
The first contract was for the development of Iran’s largest joint oilfield, Azadegan, which had been left undecided for years.
Azadegan oilfield is located in West Karoun, 80 kilometers west of Ahvaz in the vicinity of Iraq’s Majnoon field.
The Azadegan field development project is ongoing with the drilling of 185 new wells, out of which 60 were recently put into operation during a ceremony attended by Iran’s President Ebrahim Rayeesi in southwestern Khuzestan Province.
At present, the oil extracted from the field each day is processed at the West Karoun exploitation unit and carried to the West Karoun pumping station.
The second deal was for the second phase of the Azar oil field development project.
Azar is a complicated field in terms of geological structure, making the drilling operations extremely challenging. Azar oil field is located in Ilam Province, western Iran.
The third contract was for the development of the second phase of the Masjed Soleyman oil field.
Masjed Soleyman, which is home to the oldest oilfield in Iran and the Middle East, is located in Khuzestan Province.
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