Addressing a conference on corrosion management, Mohsen Khojastehmehr added the 7th Development Plan has put great emphasis on increase in production and recovery of oil and gas, continuing that NIOC needs to expand its effort to boost output.

“Our research program has mainly focused on oil and gas production,” the NIOC chief stated and mentioned that corrosion has had a direct impact on production, recalling the corrosion of offshore pipeline of [South Pars] Phase 16 that caused an over 28-million-cubic-meter reduction in the country’s gas output.

Knowledge-based system a must

Khojastehmehr, who is also the deputy oil minister, underlined that oil and gas production is in need of a knowledge-based system (KBS).

Regarding the knowledge-based companies’ engagement, the country has passed the theory stage and has reached the practice stage over the past two years, boasted the NIOC CEO, adding the number of these companies in oil and gas sectors has risen to 500 from 150.

He pointed to the Leader’s remarks on oil and gas industry’s share in the country’s economic growth – 15 percent – and said it shows that the industry is moving on the right track.

“Production will increase if we promote the quality of infrastructure of oil industry,” he emphasized.

“We need to prioritize technological programs in oil industry,” Khojastehmehr mentioned, explaining that top priority should be given to corrosion, as it is a big challenge in oil industry.

“We have to draw up a midterm plan [to solve the problem],” he stressed and highlighted the knowledge-based companies’ role in responding to the challenge.

Corrosion has caused the country’s oil industry to undergo more-than-expected overhaul and stop production for a long time, said the NIOC chief, stating that the installations need overhaul once in several years.

Drilling 35 new wells

Khojastehmehr said a plan for drilling 35 new wells in South Pars field is underway to make up for a decrease in gas production.

“We have recently reached gas in Balal field [in the Persian Gulf] and we are building a jacket to start recovering it,” he said, adding we also reached gas in new drilling and exploration operations in joint South Pars field and will develop the block if there is economic justification.

The deputy minister said gas in South Pars phases 2 and 3 were sweetened and 80,000 barrels of gas condensates were produced daily.