Expressing satisfaction with the progress made in development of the oil field during the past six months, Marashi said oil production from the oil field will reach 320 thousand barrels per day in the first phase.
Stating that drilling operations are underway by deploying 16 drilling rigs, the operator added that it is expected 185 wells to be drilled for development of the first phase.
South Azadegan oil field has already started early production after drilling 21 wells producing 50 thousand barrels per day.
Development contract of South Azadegan oil field was signed for the first time in 2004 with a Japanese company in the form of a buyback contract but the Japanese partner refused to go ahead with the plan after two years mainly due to sanctions.
After that CNPC from China took charge but it made very little progress in development of the oil field after 19 month presence in the project.
When Rouhani took office in 2013, the government set a 90 day deadline for CNPC to accelerate development of the project and finally decided to annul the contract due to lack of progress.
At present the project faces no problem with regard to meeting necessary funds for development of the oil field and it is projected the first phase come online in 2017 with production of 320 thousand barrels of oil per day.
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