18 May 2007 - 14:50
  • News Code: 104914

The managing director of National Iranian South Oil Company said that NISOC – apart from the development plan of Azaedgan field that specifies its master development plan (MDP) and installations – had given top priority to the exploitation of six wells of the field.

Seifollah Jashnsaz talking in an interview with the editor of Middle East Oil and Gas Desk of London’s weekly “Argus Petroleum” said there was no need install new equipment to put the wells into operation.

He added the wells were expected to yield 25 to 30 thousand barrels of oil per day.

According to the NISOC chief, the executive operations of the wells had started and would be predicted to end by six months.

Hereunder comes the full text of the interview.

Q: Would you elaborate on the NISOC’s output?

A: Producing 3.2 million barrels of oil per day, National Iranian South Oil Company is the biggest and oldest oil company in Iran and the Middle East.

This year marks the centenary of oil exploration and production in southern Iran and the NISOC plans to develop oilfields and boost Azadegan field’s output.

Q: How much oil will you plan to derive from Azadegan field in its early exploitation?

A: Apart from the development plan of Azadegan that will define the master development plan (MDP) and its installations, NISOC has given top priority to the exploitation of six wells of the field.

Q: How much do you invest in the project?

A: I predict some 17 million dollars is needed for the early exploitation of the field.

Q: Considering that NISOC is one of the largest and oldest oil companies of the Middle East, what is the volume of oilfields’ output?

A: There are a lot of oilfields in Iran, whose in place oil amounts to about 137 billion barrels. National Iranian Oil Co. (NIOC) plans to exploit the oilfields protectively.

Q: Masjed Soleiman is the oldest oilfield in your company’s domain. Have you witnessed any production cut in the field?

A: Although Masjed Soleiman oilfield is 100 years old, it is still yielding oil. Of course, the field’s output, due to the lapse of time and drop in the reserve’s pressure, has decreased. The current production of 10 deposits under the management of Masjed Soleiman Exploitation Co., including Qal’e Nar, Haftkal, Lab-e Sefid, and Naft-e Sefid is about 110 thousand barrels of crude oil.

Q: What have you done to boost Masjed Soleiman field’s production?

A: To this end, we have drawn up some methods. Horizontal drilling is among these methods and we have signed a contract with a Chinese company to do the job.

Aiming to increase the processing capacity, we have designed the exploitation and desalination units, which are under now construction.

We hope that the appropriate measures will pave the way for increasing the output of Iran’s oldest oilfield to 20 thousand barrels daily.

Q: How long will it take?

A: According to the forecast, it will be implemented by the next 18 months.

Q: How much has the NIOC allocated for the NISOC’s production plan. Is the allotted budget enough for your programs?

A: About 13 trillion rials (1.4 billion dollars) has been earmarked and I believe that the fund, due to the NISOC’s major programs, should be increased.

Q: Which part will you spend more?

A: The major part of the budget goes to drilling operations of development and workover wells. Given the subsidiary and supplementary operations, including installation of well-head equipment, lines, and separators, some 70 percent of the fund is spent is this section.

Q: Do you drill new wells in the field? How deep per annum?

A: It is crystal clear. New wells, due to natural production drop, are drilled in all oil reserves of the world every year. The drilling of development wells is among the major programs of National Iranian South Oil Company. In the previous year, 59 development wells equaling to 217,330 meters were drilled.

Q: National Iranian Oil Drilling Co. (NIDC) has complained about the lack of drilling platforms. Does the shortage not cause any problem for NISOC?
A: We face lack of drilling rigs. So, we have outlined plans and have received the permit to purchase 10 platforms in the current year. Other Iranian companies such as North Drilling Co. have received the green light to purchase four drilling rigs.

Q: What are your production plans and how do you boost the company’s output in the current year?

A: In general, we formulate a new plan that is put into action along with our long-term plans.

To increase production, we have drawn up different plans like development plan of Kaboud and Mansourabad oilfields and initial exploitation of Azadegan field.

The drilling of development and workover wells are the other strategies to boost the output.

Given Azadegan field’s output, we will increase the production by 40 barrels in the current year.

Q: Is there any possibility that the output of NISOC’s fields is reduced?

A: The drop in production is completely natural in all reserves of the world.

Q: How many drilling platforms do you need for the projects?

A: At present, 35 drilling rigs are working for National Iranian South Oil Company and four more are under construction. They are enough for our projects.

Q: Could you reveal the number of fields and revivable reserves in the NISOC’s domain?
A: Gas injection is the main part of the plan on revival of reserves. Totally 100 million cubic meters of gas is injected into giant fields including Maroun, Gachsaran, Parsi, Karanj, and Bibi Hakimeh daily.

A big project on gas injection into Aghajari field is underway. When the project comes on stream, 50 million cubic meters of gas is injected into it.

Q: When are you able to inject gas into Aghajari field?

A: About six months.

Q: What is Aghajari field’s current output?
A: 200 thousand barrels of oil per day.

Q: Is it true that National Iranian Oil Company plans to increase its crude oil out to five million barrels daily by 2025?

A: Yes. According to a 20-year plan that started in 2005, NIOC will remain the second-largest producer among OPEC member states with a daily 5.2 million barrel of oil output until 2025.

Q: How much investment should NIOC make to achieve the goal?

A: Over 100 billion dollars.

Q: How do you evaluate foreign companies’ presence in Iran and their cooperation with NISOC?

A: We invite overseas companies to help implement some projects. Italy’s Eni is one of them that is active in Darkhoein region.

Q: How is the latest technology required for NIOC’s plans?

A: Using state-of-the-art technology in oil industry is unavoidable and multilateral cooperation is among the ways to acquire the new technologies.

We, too, are working with top oil companies of the world to apply the modern technologies.

Q: Do the NIOC’s contracts with foreign companies serve both parties’ interests under current conditions?

A: No doubt, these contracts are not flawless. Based on experiences we have gained in the recent years, we are determined to remove the problems and appropriate rules and regulations. Any change will surely serve the interests of Iranian and foreign parties.

 

 

News Code 104914

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