Iran invests over $1 billion in joint oil field with Iraq
Iran invests over $1 billion in joint oil field with Iraq
2025-01-05 04:10
Shafaq News/ The Executive Director of the Azar Oil Field Development Project in the city of Ilam, western Iran, Keyvan Yar Ahmadi, announced on Sunday that the Economic Council has approved the development of the second phase of the field, through new oil contracts with an investment of more than one billion dollars, expecting that this contract will enter into force before next March .
“By holding several specialized meetings with representatives of the Planning and Budget Organization and submitting an explanatory report with supporting documents related to the description of the technical work and the financial estimate for implementing the project, and explaining the objectives of developing the Azar oil field, the Economic Council’s approval was finally obtained to develop the second phase of this oil field in the form of new oil contracts with an expected investment of more than one billion dollars ,” Ahmadi said, according to the official Iranian news agency IRNA.
“It is expected that this will be done with the contractor fulfilling the basic conditions in the contract and the relevant procedures on the part of the employer, and this contract will be implemented and become effective before the end of this year (the Iranian year ends in March), ” he added.
Ahmad pointed out that “the Dehloran Gas and LNG Plant (NGL-3100) will be launched in the near future,” stressing that “the compression and sweetening facilities of the associated gas in the Azar field, which were completed a long time ago, have been inaugurated and are ready to send gas to this plant .”
He pointed out that “based on this, all activities of the first phase of developing this field will be determined and the main milestone (the turning point and main point of the project’s progress) will be delivered. The first phase of developing this complex plant will reach its goal by achieving all contractual objectives and sharing the Iranian share of more than 70%, which led to the production of 83 million barrels of oil and revenues of nearly 6 billion dollars .”
The Azar field is located in the discovered block “Anar An”, 25 km from the city of Mehran, near the Iranian-Iraqi border, and is considered one of the most complex fields in Iran .
The reserves of this field amount to 2 billion and 500 million barrels of crude oil, and the amount of oil that can be extracted from it is estimated at 400 million barrels .
The Iranian government had previously announced that the rate of oil production from the Azar oil field, shared between the Iraqi provinces of Ilam and Wasit, reached 65 thousand barrels per day. The cost of the field investment project amounted to 1 billion and 400 thousand euros, and Iran drilled 20 oil wells in it .
Iran had started extracting oil from this joint field in the border strip for the first time 8 years ago .
It is noteworthy that the former Iraqi Minister of Oil, Ihsan Abdul Jabbar, said in a previous statement to Shafaq News Agency that the country does not have major losses in investing in its fields shared with neighboring countries, stressing that the ministry is proceeding with developing those fields and increasing crude production in them .
There are 24 oil fields in Iraq shared with Iran, Kuwait and Syria, including 15 producing fields and the others unexploited. The most prominent of these fields are Safwan, Rumaila and Zubair with Kuwait, and Majnoon, Abu Gharb, Bazargan, Al-Faka and Naft Khana with Iran .
shafaq.com
