11 July 2020 - 16:19
  • News Code: 304798
North Yaran Developed at Lower Cost than Contract Capex

TEHRAN (Shana) -- The chairman of the board of directors of Tadbir Energy Development Group said that the contract for the development of North Yaran Field was signed with a capital expenditure of $700 million, but it was put into operation with $580 million investment.

Addressing a ceremony to sign a contract by the National Iranian Oil Company (NIOC) and Persia Oil and Gas Industry Development Company in Tehran on Saturday, Gholamhossein Nozari said Azadegan field, as a future pole of oil production and the main support of the economy, can be the drivers of the country's economy, and Yaran field is a part of the same field (Azadegan).”

He pointed out that by digging descriptive wells, the connection between North and South Yaran fields will be determined, adding: “Implementation of phase one of Yaran (North) field development project, for reasons such as identifying and equipping appropriate manpower, project management, use of domestic manufacturing, which accounted for about 80 percent of the equipment installed in Yaran, major use of indigenous forces and the like was a huge achievement.”

The chairman of the Tadbir Energy Development Group noted that the North Yaran field development contract was one of the few buyback contracts that was implemented at a lower cost than the contract capex.

According to Nozari, in the negotiations with Russia’s Rosneft Company, an estimated $700 million was proposed for the second phase of the Yaran project, but in the negotiations with the Petroleum Engineering and Development Company and the savings considered, the cost of the contract was considered less than that figure.

He said his company had so far drilled over 57 wells, expressing hope that construction of downhole pumps would be maximized domestically in order to enhance oil recovery.

Over 800 wells need such pumps in West Karoon Region, he said, adding construction of such pumps required complicate engineering.

News Code 304798

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