| Azadegan oil field | |
|---|---|
| Country | Iran |
| Offshore/onshore | onshore |
| Operator(s) | NIOC |
| Field history | |
| Discovery | 1999 |
| Production | |
| Current production of oil | 40,000 barrels per day (~2.0×106 t/a) |
| Estimated oil in place | 33,200 million barrels (~4.53×109 t) |
| Recoverable oil | 5,200 million barrels (~7.1×108 t) |
| Producing formations | Sarvak, Kazhdomi, Godvan, and Fahilan layers |
The Azadegan oil field is an oil field in Iran. The field is located 80 kilometres (50 mi) west of Ahvaz close to the Iraqi border.
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The oil field was discovered in 1999. The first exploration well was drilled in the field in 1976, but its discovery was finalized after drilling the second well in 1999. The field has an approximate area of 900 square kilometres (350 sq mi).[1]
Iranian authorities claims that Azadegan field has oil-in-place reserves of about 33.2 billion barrels (5.28×109 m3) and recoverable resources estimated at about 5.2 billion barrels (830×106 m3).[2] It is one of the NIOC Recent Discoveries and the biggest oil field found in Iran, in the last 30 years.
Sarvak, Kazhdomi, Godvan, and Fahilan are productive layers of the field. The current production is 40,000 barrels per day (6,400 m3/d).[2] Crude oil produced by the Fahilan layer is light while the other layers yield heavy crude.[3]
In the January of 2009, Chinese oil firm China National Peroleum Corp (CNPC) signed a deal to develop north part of the Azadegan oil field.[4]
Under the first phase lasting 48 months, crude output capacity would reach 75,000 barrels (11,900 m3) per day.[4]
Project capex is estimated to be US$1.76 billion and contractor agreed ROR is reported to be 14.98%.The period for development and reimbursement would be 12 years.[5]
One year after discovery of Azadegan oil field and subsequent to negotiations between Iran and Japan for development of the field, a Japanese consortium led by INPEX Company started seismographic studies there. Iran and Japan signed a contract worth 2 billion dollars for development of Azadegan oil field in February 2004 and the field was projected to yield 260,000 barrels (41,000 m3) per day crude oil by 2013.[1]
According to contract, production was to reach 150,000 barrels (24,000 m3) per day in the first stage; which would have been increased to 260,000 barrels (41,000 m3) per day after completion of the second stage. According to the primary contract, 75 percent of the project was owned by INPEX while share of the Iranian NICO, which is affiliated with the National Iranian Oil Company, was determined at 25 percent.[1]
INPEX, most of whose stocks were owned by the Japanese government, refrained from living up to its commitments for developing Azadegan oil field due to certain problems. Existence of vast minefields was just one excuse used by the Japanese and they noted that as long as the lands have not been demined, INPEX would not be able to develop the field.[1]
At the same time, demining had been finished up to a depth of six meters and Iranian authorities had noted on various occasions that everything was ready for development operations. However, INPEX showed that it was not willing to go on with the contract and the most obvious reason for that decision was pressures exerted by the US administration on the Japanese government.[1]
Finally, Iranian oil industry officials lost patience with INPEX and, in October 2006, the share of the company was reduced from 75 percent (which had been agreed in 2004) to 10 percent and 90 percent of the plan was given to the Iranian NICO to go on with it by drawing upon its skilled Iranian manpower.[1]
Since NICO had no experience in upstream operations, the project was transferred to Petroiran Development Company, which is a subsidiary of NIOC, without legal transfer of the plan. Petroleum Engineering and Development Company was also appointed as representative of the National Iranian Oil Company and client of Azadegan development plan.[1]
To realize early production from the field, National Iranian Oil Company asked PetroIran (Petroleum Engineering and Development Company) and National Iranian South Oil Company to present their plans and, finally, the project was given to the National Iranian South Oil Company.[1]
Early production from the field was discussed in a meeting attended by experts from National Iranian Oil Company. They maintained that the plan proposed by the Japanese INPEX will leave 96 percent of Azadegan oil underground and noted that INPEX plan was based on incomplete static information.[1]
According to discussions at that meeting, early production from Azadegan oil field should aim at sustainable production from the field and the session led to changes in the plan which had been drawn up by the Japanese.[1]
Technical plan for early production from Azadegan oil field, as projected by the National Iranian South Oil Company, included production of oil from six existing exploration wells, which had been drilled there from 1999 to 2003.[1]
Production from those fields was given priority by National Iranian South Oil Company regardless of the comprehensive development plan of the field.[1]
The plan include repair and completion of six existing wells, building about 90 km of flow pipeline from the wells, building two gas separation complexes and about 100 km 10-inch pipeline from Azadegan oil field to production plant No. 3 of Ahvaz.[1]
Accessory operations included construction of access roads and pipeline routes and the wells are projected to produce up to 20,000 barrels (3,200 m3) per day oil. Early production from Azadegan oil field has been given to the National Iranian South Oil Company by National Iranian Oil Company. Operations have started three months ago and production at 20,000 barrels (3,200 m3) per day will start in three months.[1]
Also, construction of a flow pipeline, repair of two wells, construction of two separation plants and a 10-inch pipeline is underway. Out of six wells, five wells have been completed and the wells are ready to produce 3,000-4,000 barrels (640 m3) per day.[1]
In addition, caretaker of Ministry of Petroleum ordered production from the fields should be started at 50,000 barrels (7,900 m3) per day. To achieve that output, gas collection and drilling 15 wells would be needed and relevant studies have been started.[1]