Baku, Azerbaijan, Nov.10
By Fatih Karimov - Trend: Seven onshore drilling rigs are operating at Iran's South Azadegan oilfield, drilling 16,073 meters of wells so far.
Manouchehr Asadi, Manager of South Azadegan oilfield development project, said that drilling the seven wells are complete by 20 to 70 percent, Iran's Shana news agency reported on November 10.
Two wells have already been drilled and came on stream at the oilfield, he noted.
Asadi said on July 26 that 50 wells will be drilled across the field, Iran's Moj news agency reported.
On July 21, the managing director of Iran's Petroleum Engineering and Development Company (PEDEC), Abdolreza Haji Hosseinnejad, said that although the plan is to develop the oilfield using internal resources of the National Iranian Oil Company (NIOC), capable and committed foreign companies are welcomed to participate in the project.
Some $500 million should be invested in the first phase of the project, he said, adding that the oilfield is projected to produce 320,000 barrels of oil per day.
In 2009, China National Petroleum Corporation (CNPC) signed a memorandum of understanding with NIOC, promising to pay 90 percent of development costs for the South Azadegan oilfield while taking ownership of a 70 percent stake. An Iranian official said the project needed investment of up to $2.5 billion, Reuters reported.
On Feb.18, Iran issued an ultimatum to CNPC over its continuous delays in developing the oilfield.
At the time, Iranian Oil Minister Bijan Namdar Zanganeh said "If this trend continues, we will expel CNPC from the project."
Iraq, which owns the other half the South Azadegan joint oilfield, started producing 175,000 barrels of oil per day at the field in September 2013.
While Iran's production rate stands at 50,000 barrel per day, Baghdad plans to increase its production at the field up to 400,000 barrels per day in the near future.
Edited by CN
