Initial estimates show that development of Changouleh requires $2.2 billion in investment. Such activities as 3D seismic tests, location of wells and infrastructural activities like cleaning and construction of access roads for the development of the field have already been done. The development of the field will start as soon as an investor has been chosen.

Studies conducted on this field indicate that 19 wells need to be drilled for recovery from Changouleh.

Development of this field has been defined in two phases. In the first phase, 15,000 b/d of oil will be recovered under early production plan, while in the second phase the output will reach 50,000 b/d.  

Changouleh was first supposed to be independent, but 3D seismic tests and interpretation of seismic data showed its shared nature. The Exploration Directorate of National Iranian Oil Company (NIOC) has confirmed that Changouleh is a joint oil field.

In the first phase development of Changouleh, which is expected to last 40 months, four new wells would be drilled while two exploration wells will be repaired. Furthermore, a 100-km oil pipeline, as well as oil and gas separation facilities would be established.

Under the second phase that would last 60 months, 13 new wells will be drilled while infrastructural facilities along with pipelines are envisaged to be provided. That would raise production from Changouleh to 40,000 or 50,000 b/d.

The section of Changouleh lying in Iraqi territory is known as Badra. Changouleh is located near Azar oil field in the Anaran oil block.

Being located 20 kilometers southeast of the city of Mehran in Ilam province, Anaran oil block was discovered in 2005 by Norway’s Statoil and Russia’s LUKOIL. The block is estimated to hold recoverable reserves of 400 to 650 million barrels of crude oil.

Changouleh oil field lies along Iran-Iraq border. Bangestan formation in Changouleh field is the second most important field in the Ilam region.

Changouleh is estimated to hold 4.3 billion barrels of oil in place with API at 22. Regarding the construction activities of this project, two new wells are to be repaired while two existing wells are to be repaired for early production from the field. As far as surface facilities are concerned, a separator, transfer pumps, diesel-fueled generator supplied electricity, evaporation pool, flare, stream pipes and wellhead installations are envisaged.

In order to transfer oil that would be supplied under early production, a 130-kilometer pipeline, measuring eight inches in diameter, is being used for delivery to Dehloran.

According to a report by the Petroleum Engineering and Development Company (PEDEC), with the implementation of the early production development of Changouleh field and assessment of the field’s hydrocarbon potential, it would be possible to implement the major development plan for this field with the objective of recovering 65,000 b/d of crude oil.

According to official data provided by the Petroleum Ministry, Iran has more than 102 oil fields, 28 of which are shared with neighboring countries. Onshore joint fields are shared with Iraq, and offshore ones are shared with the littoral states of the Persian Gulf and the Sea of Oman.

Tourism Island a Gas Hub

Kish gas field, which is estimated to contain as much gas as held by five phases of the giant offshore South Pars Gas Field, is a top priority for the National Iranian Oil Company (NIOC). The rate of recovery from this sweet gas field is said to stand at 75%, which means too much for investors and petroleum engineers. Due to the facility of processing its gas to be fed into domestic gas network or to be exported, this field has been taken into consideration by Iranian oil officials. Therefore, Iran intends to develop this field as soon as possible in three phases and raise its output to 5 bcf/d.

Meantime, the location of this field in the coral and tourism Kish Island has largely affected its development. Exploration and drilling of wells at this giant gas field, which is recognized as the second largest gas field in the Persian Gulf, are under way with minimum damage inflected on the environment, while onshore field development is often harmful to the environment. To that effect, drilling of "Cluster A" wells located near the airport in this island and "Cluster B" wells is to be done directionally in order to occupy minimum space possible and cause minimum change to the shape of this tourism island. Meantime, the refining facilities in this gas field have been moved to Gorzeh Port instead of Kish Island in a bid to prevent air pollution. The gas produced for refining is moved to Gorzeh Port via pipeline to be sweetened and brought back to Kish Island.

 The Kish gas field development project is endowed with features which make it different from other fields. For a variety of reasons, the development of Kish gas field has been delayed.

Currently, all projects related to Phase 1, except for the processing unit, have been activated and the drilling of 13 onshore wells is under way.

In Phase 1 of the project, drilling of 12 production wells, workover of an existing exploration well, construction of subsea pipeline and sweetening facilities, gas condensate recovery, light gas pipeline, gas condensate export facilities and processing installations with a capacity of 28 mcm/d of sour gas are envisaged to recover 26 mcm/d of light gas and 13,000 b/d of gas condensate.

Onshore installations and the offshore pipeline are being completed and the agreement for the power plant has been signed with a domestic company. The required equipment for the power plant is being supplied.

Kish gas field is estimated to contain 38.3 tcf of gas plus 398 million barrels of condensate. An option is being studied to gather and transfer gas to Aftab Port where the refinery is located. Therefore, the collected gas will be piped to the Aftab Port refinery to be desulfurized and fed into national network for consumption.

Phase 1 development of Kish gas field is expected to produce 1 bcf/d of gas to be consumed domestically, and 11,300 b/d of condensate for exports.

Onshore wells will be 85% complete soon, while the subsea pipeline is 83% completed.

Kish gas field is estimated to be valued at $300 billion, thanks to its huge gas reserves at the depth of 4,400 meters. Studies indicate that up to 5 bcf/d of gas would be recovered from Kish gas field. Based on maximum gas price in the region, Kish is estimated to be valued at $250 billion. When measured on global scale, Kish is valued at $500 billion.

According to the latest reports, development of Kish gas field has been under way at a suitable rate in the first phase. Drilling is mostly done. There are also plans under way to revise the design of Phase 1 in order to eliminate energy-intensive processes and replace them with energy-efficient ones. PEDEC is operating Kish gas field.

Domestic development of some processes is expected to be done throughout the development of Kish gas field. A gas sweetening project is being followed up on in collaboration with the Research Institute of Petroleum Industry (RIPI), in which determining the dew point is on the agenda. This project is said to be economical.

Courtesy of Iran Petroleum