Crossing 1bcm/d Gas Output Threshold

Focusing on the development of the South Pars gas field, taking the necessary measures and using all the available capacities to ramp up production of rich gas from the supergiant joint field have always been among the main concerns of Iran’s oil industry. Likewise, Iran's production of rich gas has surpassed that of Qatar despite its larger share of the offshore gas field. The development of phases 13 and 22-24 has been completed and the development of phase 14 has had over 91% physical progress by late March 2022. On the other hand, implementation of the 11th phase of the South Pars gas field development plan and the initial production forecast from this project in the calendar year 1401 (started on 21March 2022) are among the important plans in this gas field. This is while the phase had only progressed 34% by the end of the previous Iranian calendar year.

According to the Department for Planning of the General Directorate of Policymaking, Strategic Planning and Energy Management of the Ministry of Petroleum, with the support of the country's gas production jump in South Pars, Iran’s natural gas production capacity exceeded 1,000 million cubic meters per day for the first time.

The average production of rich gas from the South Pars gas field has soared significantly over recent years, and this figure has grown by more than 4% in 1400 year-on-year. With the launch of the new phases of South Pars, the country's dependence on the field for supplying its demand for natural gas hit 70% during the same year. In coincidence with the development of the remaining projects in the South Pars gas field, the development plans of other gas fields operated by the National Iranian Oil Company (NIOC) were followed up. Based on this, the implementation of the gas field development plan package of the Iranian Central Oil Fields Company (ICOFC) including the development plan of 11 undeveloped fields, the development of the second phase of the Aghar field and the construction of a compressor for the Sarkhoun and Shanol fields are under way.

Revival of 750 Low-Yield Wells

Concentrating and taking the necessary measures to boost crude oil production capacity of the joint fields, and prioritizing Azadegan, Yadavaran, Yaran, Azar and Farzad oil fields, are among the main projects of the Iranian oil industry. On the other hand, planning made  to ramp up production capacity of oil fields through reviving about 750 low-yield wells by domestic knowledge-based and technological companies, the cumulative additional production of about 83 million barrels of crude oil have been carried out since the 13th administration took office until the end of Iranian calendar year 1400 (ended on 20 March 2022 ), while following up on the implementation of oil production maintenance and enhancement (EPC-EPD) plans with the aim of maintaining and enhancing oil production capacity by 281,000 barrels per day within the framework of 33 packages and the requirement to use domestically manufactured goods in these contracts with emphasis on special support for manufacturing petroleum industry goods at home has been on the agenda. Likewise, the parties to the contracts are required to purchase the highly-used items in the projects from Iranian manufacturers. It is worth mentioning that the completion of the first part of the second phase of the master plan for the renovation and reconstruction of the ground facilities of the National Iranian South Oil Company (NISOC) by an Iranian consulting company assisted by a foreign partner is one of the other plans implemented by NIOC for the development of Iran’s oil fields.

Presence of Domestic, Foreign Firms

Chief among the other measures taken in the development of oil and gas fields is the start of the development activities in oil and gas fields whose contracts have already been concluded. These fields include West Paydar and Aban that are to be developed by a consortium made up of foreign and domestic companies, Sepehr and Jofeir are to be operated by an Iranian company, Cheshmehkhosh, East Paydar and Dalperi with a foreign and domestic consortium, complementary development of the first phase of South Azadegan Field with Petropars, Farzad joint field development with Petropars and the development of Belal Gas Field with Petropars.

Furthermore, efforts have been exerted to conclude development contracts in oil and gas fields: development and operation of the Sohrab field, signing of a contract for the development of the second phase of the oil layer of the South Pars joint field in March 2022 with the participation of Iranian Offshore Engineering and Construction Company and a foreign partner, signing of a memorandum of understanding for the second phase development of Masjid Soleyman oil field with the Iranian Gostar Sina company in March 2022, development and operation of the joint Yaran field (including North and South Yaran) with a domestic company, planning to enhance recycling, production enhancement and operation of the Koupal field in the Asmari layer with the participation of a foreign company and a domestic partner, development and operation of Parsi and Paranj fields with MAPNA Group, conclusion of a memorandum of understanding for the development of Dehloran and Danan oil fields with a foreign company, and conclusion of a memorandum of understanding for the development of Eram and Pazan gas fields with a foreign company.

Enhanced APG Collection

Collecting associated petroleum gases (APG) has been always considered one of the recurring concerns of Iran's oil industry. NIOC has implemented numerous projects to collect APG in some of its operational districts, for example with the inauguration of Bidboland Persian Gulf Refinery, part of the APG was collected from the three provinces of Khuzestan, Bushehr, Kohgiluyeh and Boyer Ahmad, while the operation of the gas collection unit of Parsi, Maroon 3, Mansouri, and Maroon 6 fields has also been carried out.

On the other hand, eight APG collection contracts were struck between Bidboland Persian Gulf Gas Refining Company and domestic companies in March. These major gas collection projects include Maroon Petrochemical Company, Persian Gulf Petrochemical Industries Company, NGL3100, NGL3200 and NGL Kharg, as well as the projects to reduce APG flaring and CO2 emission in 8 refineries located in South Pars gas complex. With the completion of the ongoing projects, the capacity of flare gas collection will increase to about 42 million cubic meters per day, and by carrying out the plan, gas flaring will be prevented in the region.

The transmission of 12 million cubic feet per day of APG from Naftshahr and Soumar oil fields to a domestic company, 67 million cubic feet per day of flare gas from Cheshmehkhosh oil field to a domestic company with 37% physical progress, flare gas from Sarvestan and Saadat Abad fields amounting to 14 million cubic feet per day to a consortium of two Iranian companies with a physical progress of 28%, and 10 million cubic feet per day of APG from the Khesht oil field to a domestic company, are other plans for collecting flare gases in Iran's oil industry, which have countless benefits for the industry.

Courtesy of Iran Petroleum