Daily average gas production in the first seven months of the current Iranian year (started March 20) reached 163.5 million cubic meters, achieving 122% of the company’s gas production goals, according to Hamid Izadi.

With the onset of cold weather in Iran, ensuring gas supply for various sectors—from households to industries and power plants—becomes a top priority for the Ministry of Oil. Oil and gas companies of the country have specific production responsibilities to meet this demand.

However, due to high fuel consumption and a lack of optimization in usage, actual production often exceeds planned targets to prevent power outages or gas shortages. ICOFC, following this principle, has maximized its gas production with the arrival of the season’s first cold front.

In an interview with Shana, Izadi outlined the company’s role in supplying winter fuel. He stated that the company’s total gas production from all fields is around 192 million cubic meters per day, representing 122% of production target for the month ending November 20.

The full text of the interview follows:

Gas deficit has become a major challenge in recent years. How has ICOFC, as one of the country’s largest oil and gas producers, contributed to addressing this issue? 

ICOFC includes the South Zagros Oil and Gas Production Company, East Oil and Gas Production Company, West Oil and Gas Production Company as well as the Sarajeh Operations Zone. In addition to producing and supplying gas, ICOFC plays a strategic role in gas storage, with key storages like Sarajeh in central Iran and Shourijeh D in Khangiran serving as critical reserves for northeastern winter consumption.

How does the gas storage process work in these reservoirs? 

Gas is injected during the eight warmer months of the year and withdrawn over the four colder months.

How much gas is injected to enable daily withdrawals of 25 million cubic meters in winter? 

About 1 billion cubic meters of gas are injected into the Sarajeh field during warm months, of which 81% was completed this year due to early cold weather. Injection has stopped, and we have started withdrawal. Similarly, in Shurijeh D, 2 billion cubic meters were planned, with 81% implemented. The measures of converting production to injection will be carried out in the shortest possible time with the round-the-clock efforts of my colleagues of all departments with the prioritization of activities in order to use any opportunity for storage and help to resolve the shortfall in the cold season of the year.

Considering these efforts, how much gas will ICOFC produce this winter? 

The National Fuel Committee has set a daily production target of 162 million cubic meters for October 22-November 20. However, early cold weather prompted maximum production efforts from October 1. Currently, the company is producing 122% of its planned target. Peak consumption is expected in late-January and February, with a forecasted production of 242.7 million cubic meters per day.

What factors are critical for achieving these production levels, and does this include withdrawals from gas storage? 

Key factors include strict adherence to production and maintenance schedules, compliance with National Fuel Committee directives, and implementation of developmental and corrective projects.

This year, due to not allocating enough time, as well as changes in the schedule for the repairs of the zones and its late notification, we faced many problems as the efficiency of the repairs was also affected to a great extent, but with the help of God and with the careful devotion of the executive staff and the close supervision of the headquarters, and the operational areas colleagues, we will be fully prepared to sustainable winter production.

Due to the cold weather since late-October, we are now at the production peak with a difference of half percent, which is regardless of gas reproduction from storage tanks.

With colder weather, daily withdrawals of about 25 million cubic meters from storage will increase production to over 238 million cubic meters, or 25% of national gas output. If additional projects are executed, output could rise by 1%.

What are the contributions of subsidiary companies to ICOFC’s daily production of 170 mcm?

South Zagros Oil and Gas Production Company produces an average of 118 million cubic meters daily, exceeding its target as East Oil and Gas Production Company, produces approximately 43 million cubic meters daily and East Oil and Gas Production Company, primarily from Tang-e Bijar field, produces over 6 million cubic meters daily. 

The overall average gas production of ICOFC stands at about 170 million cubic meters per day, which reaches 243 million cubic meters per day at peak consumption.

What are ICOFC's major development projects? 

Approximately 70 projects are currently underway at the ICOFC, focusing on production activities ranging from well preparation to the completion of operational units, as well as gas flaring collection and pressure boosting projects.

These efforts aim not only to maintain production levels but also to enhance them. Some of these projects involve new production initiatives, while others include remedial actions, such as using coiled tubing units or drilling rigs to increase flow rates or optimize production.

With the implementation of these plans, the company’s gas production capacity will reach around 243 million cubic meters per day, although the current peak production capacity during high demand periods is 238 million cubic meters per day.

To boost gas production, the fields under the South Zagros Oil and Gas Production Company has been prioritized as, at the Day field, at least two wells are expected to be operational by this winter, contributing a combined flow rate of 3 million cubic meters per day.

Additionally, capacity expansion is planned for the Aghar and Dalan fields which includes completing wells No. 19 at Dalan and No. 18 at Aghar, with each expected to add around 1 million cubic meters per day, leading to a roughly 1% production increase.

Currently, Dalan well No. 19 has been brought online, while Aghar well No. 18 will be operational after completing the flowline and related measures.

Efforts are also underway to launch the Varavi pressure-boosting station, which will add 2 to 4 million cubic meters per day to the gas output once operational. The construction and completion of this station, spearheaded by the company’s engineering and construction management using local contractor capabilities, is nearing completion. This project highlights the self-sufficiency and expertise of domestic contractors and specialists and is a source of national pride.

Additionally, as part of an accelerated gas production initiative, the Tous field, under the East Oil and Gas Production Company, was slated for commissioning this year, though a slight delay in its operation is possible. Once operational, it is expected to add approximately 3 million cubic meters per day to ICOFC's production.

In the West Oil and Gas Production Company, two wells are being developed with a total flow rate of 2 million cubic meters per day. Of these, well No. 14 is nearing production.

Finally, in addition to planning and executing major equipment and facility overhauls, the company has carried out in-well testing and measures to increase gas recovery across all gas fields ahead of the cold season. Efforts have also been made to plan and define process optimization projects to minimize downtime during overhauls and reduce unplanned outages. These initiatives aim to strengthen the company's role in addressing energy imbalances and ensure safe, stable, and maximum gas production.