Iran's Petropars is taking charge of doubling the output at the South Azadegan oilfield located on the border with Iraq, a project once abandoned by a Chinese oil giant, the Islamic republic's Petroleum Engineering and Development Company (PEDEC) said on Monday
MOSCOW (Pakistan Point News / Sputnik - 20th July, 2020) Iran's Petropars is taking charge of doubling the output at the South Azadegan oilfield located on the border with Iraq, a project once abandoned by a Chinese oil giant, the Islamic republic's Petroleum Engineering and Development Company (PEDEC) said on Monday.
According to PEDEC, the two national companies struck a deal on Monday. The oilfield's current production capacity stands at 140,000 barrels per day.
"The contract was signed with the aim of development of South Azadegan field and increasing the daily production capacity of this field to 320,000 barrels of crude oil in 30 months and within the contract amount worth $961 million and IRR 1,183 billion [$28.1 million]," PEDEC said.
In addition, the sides inked a $300 million contract for the construction of a� central treatment export plant.
"The contracts will complete development of the joint field with 206 wells and 320,000 barrels/day of crude oil as well as 200 million cubic feet of gas per day," the press release added.
Over the years, a number of foreign companies have expressed their interest in the South Azadegan field development. First, the National Iranian Oil Company (NIOC) signed a deal with China's CNPC but had to expel the latter from the project in 2014 over "foot-dragging" and failure to launch the work.
In 2016, Iran entered into a preliminary agreement on South Azadegan with Total. The French company left the country two years later amid US sanctions pressure.
