According to Iran Daily, Fereydoun Kurd Zanganeh stated that negotiations with domestic and foreign investors in the oil industry were being pursued and there are no restrictions for this sector, adding that recently petrochemical companies and holdings have joints investment talks in upstream oil projects which is a good indication that all the potentialities in the country are being tapped.

Inflow of foreign capital into the oil industry

Referring to the special conditions of the country and the confidentiality of some contracts and agreements signed with foreign companies, he added: "In these 8 months, we signed contracts and agreements with foreign companies that will ultimately help the development of the oil industry."

The director of investment and business of NIOC continued: “For example, a secret contract of €500 million was concluded with a foreign company at the end of the previous calendar year which ended on March 20, but there was no reason for the media boycott. This is the first contract for the development of the South Pars oil layer. At the same time, we are pursuing exploration of oil layers.”

$20 billion Investment by Domestic Resources

Kurd Zanganeh stated: "According to capacity measurements, we have planned to provide $20 billion in credit from the banking system, financial and credit institutions and the private sector."

This capital can meet a significant part of the industry's needs and is an effective step towards achieving the target of 5.7 million barrels per day of oil production capacity.

He said: "Financing the most important part of the southern oil fields, namely Azadegan field, has been summed up and good news will be announced next week. It is also planned to develop the two northern and southern parts of the field in an integrated manner, and we are looking to form a consortium for this purpose.”

The Director of Investment and Business of the National Iranian Oil Company, pointing out that this consortium will consist of Iranian companies, said: "This cooperation will be formed in the form of exploration and production companies (E&P) and this process will start from financing of the domestic sector, especially the banking system. Companies that have announced their readiness will also be part of this funding.”

Azadegan Output to hit 700 kbd

Kurd Zanganeh added: “The development of Azadegan Field will be integrated from now on. We intend to develop the field in two 4-year periods. The goal is to increase the field's production capacity to 700,000 barrels per day within the next 7 years. In other words, it will reach 220,000 barrels per day by the end of this [calendar] year, 570,000 barrels per day in the second step and 700,000 barrels per day in the third step. This program is 7 years long and its financing will be from domestic sources.”

Regarding technology, he added: "The first issue is financing from domestic resources, but in terms of technology, companies operating in E&P and EPC in Iran have reached an acceptable capability and can carry out projects. Therefore, we do not have any problem for development of Azadegan and other oil fields.”

Recovery Rate to double in Azadegan Field

The director of investment and business of the National Iranian Oil Company, noting that the development plan of Azadegan has also considered an increase in crude oil recovery rate, said: “The plan to increase crude oil recovery rate means to increase oil recovery from the field. In the first step, 10% recovery rate has been envisaged. That is, we will increase from the current 5% to 10%, and this will be done using the enhanced oil recovery methods in the field.”

Kurd Zanganeh continued: "Enhance oil recovery (EOR) or improved oil recovery (IOR) methods will be adopted in the field. Increasing the recovery rate is a serious matter that increases the country's wealth. In the West Karun region, there are about 67 billion barrels of crude oil in place, and increasing this recovery rate can provide the country with more barrels of oil from this joint field.”

Cooperation with foreigners for sectors in need of technology

The Director of Investment and Business of the National Iranian Oil Company underlined the ongoing negotiations with international companies, and said: "For example, in some joint offshore fields, we need to attract financial resources and technology. So we have negotiated with European and Asian countries and fortunately we have received positive signals. Some companies have announced their readiness to invest. In addition to investing in offshore technologies, we need to upgrade onshore technologies to some extent.”

He said: "We are also consulting with European companies for supplying the necessary equipment and items, and this cooperation capacity will be provided by the end of the year."