BAKU, Azerbaijan, March 16. Iran is set to launch a small crude oil refinery for the initial processing of crude oil from the South Azadegan oil field, which it shares with Iraq. The refinery will soon be operational,Nasrollah Zarei, CEO of the Petroleum Engineering and Development Company (PEDC), told reporters, Trend reports.
Zarei stated that the refinery will have a daily processing capacity of 320,000 barrels of crude oil. He explained that there has been a slight delay in the refinery’s launch due to the unavailability of some specialized equipment.
The company official emphasized that small refineries for the initial processing of crude oil play a crucial role in enhancing the value of the oil industry. These refineries are essential for preparing crude oil to meet the necessary standards for transportation, further processing, and export.
Zarei added that the ultimate goal of the refinery is to prepare the crude oil extracted from the South Azadegan field for export. With the refinery’s launch, not only will production potential increase, but the infrastructure required for the development of the South Azadegan field will be strengthened. Additionally, operational, transportation, and export costs will be reduced.
The South Azadegan oil field contains 28.2 billion barrels of crude oil, of which 1.6 billion barrels are reportedly possible to produce. Under the plans related to the development of the field, the first plan envisages daily production of 320,000 barrels of crude oil and 197 million cubic feet (about seven million cubic meters) of natural gas from the field, while the second plan foresees daily production of 280,000 barrels of crude oil.
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