BAKU, Azerbaijan, February 25. Iran is determined to develop the Azar oil field (Badra in Iraq), which is a joint oil field with Iraq, through local capabilities, an official from Iran's Petroleum Engineering and Development Company Keyvan Yarahmadi told reporters, Trend reports.
He reiterated that in 2005, accurate data regarding the hydrocarbon reservoirs within this domain was acquired.
According to him, based on the initial program, an investor and contractor company had been identified; however, with the sanctions against Iran throwing a wrench in the works, the foreign company that inked the deal decided to back out of the collaboration.
Yarahmadi said that in 2012, under the contract between Ahdaf Investment Company and Iran's Oil Industry Engineering and Construction Company (OIEC), the field was developed in the first stage with an investment of 1.5 billion euros, and production began.
The development of the Azar oil field initiative amidst the
sanctions levied on Iran is characterized as a notable achievement
within the nation's portfolio of strategic undertakings, as
articulated by the official.
Yarahmadi highlighted that over 75 percent of the operational
execution in the advancement of this sector was conducted by
Iranian enterprises, despite the intricate geological framework of
the oil field.
He also indicated that in 2022, strategic dialogues were commenced
regarding the subsequent phase of the Azar field's enhancement.
Although a contract was signed for the development of the field in 2023, no steps have been taken so far within the framework of the contract; however, the consortium of international companies from Iraq continues their activities without any restrictions, the official added.
To note, the Azar oil field is located in the Mehran County of Iran's Ilam Province. This field reportedly has 2.5 billion barrels of crude oil, and it is feasible to produce 400 million barrels of them.
Iran is expected to start developing the second phase of the Azar oil field worth $1 billion next Iranian year (from March 21, 2025 through 20 March 2026).
The country's total hydrocarbon reserves are 1.2 trillion barrels. It can produce 340 billion barrels with existing technological equipment and utilize about 30 percent, while 70 percent remains unutilized underground.
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