Nasrollah Zarei said the new Iran Petroleum Contract model has been issued integrally for Azadegan field. Execution work on the project began last year, and in recent meetings, necessary follow-ups have been done to speed up implementation.

The project is being carried out integrally, including both North and South Azadegan, Zarei said. In terms of technology, one of the company’s key demands from contractors is the use of the world’s latest technologies, particularly to boost recovery rates and cut drilling and development costs.

Given the technology gap, especially in key sectors, the contractor must plan methods to neutralize sanctions and facilitate access to modern global technologies, Zarei said. Alongside new tech, the project will also maximize the use of domestic capabilities, including technical know-how and local knowledge-based companies and manufacturers.

Environmental considerations

Zarei said environmental considerations have been incorporated into the Azadegan development project. For example, using certain technologies allows more horizontal deep drilling while reducing the number of surface facilities.

The contractor for the Azadegan project must establish an agile, young and experienced structure from the start to succeed in such a large project, Zarei said, adding that the Ministry of Petroleum and the National Iranian Oil Company continue to emphasize this point.

A project requiring roughly $10 billion in investment demands precise organization and the use of skilled staff, the managing director said. The contractor must act more quickly in this regard, and some efforts appear to be underway.

Recalling the project’s timeline and the signing of a preliminary contract with Azadegan Arvand Company in the Iranian year 1404 (starting March 2025), Zarei said the company has begun initial work, including studies, engineering activities and supplying some key drilling goods. The recent meeting with the contractor aimed to speed implementation and review progress.

345,000  barrels per day increase over 8 years

The Azadegan development project is currently in the study, engineering design and procurement phase and has not yet entered on-site execution, Zarei said. Work continues at the same pace, and efforts are being made to prevent recent national conditions from causing delays. The recent meeting stressed the need to accelerate the project.

Based on a decision by the Economic Council, the target is to increase output from the field by 345,000 barrels per day over eight years, Zarei said. That would raise production from 205,000 bpd to 550,000 bpd.

Zarei noted the project has not stopped since the contract was signed, and the field’s extraction capacity has already surpassed 245,000 bpd.

Regarding the impact of recent imposed war conditions on projects, Zarei said the oil industry’s upstream sector faced no serious production problems. Some development projects saw reduced on-site staffing due to safety and personnel protection concerns, but there was no decline in production.

The managing director said major ongoing development projects include Yadavaran, Sohrab, Yaran, Changouleh and Paydar-e Gharb.