The project, which aims to boost the country’s oil production capacity by 10,000 barrels per day (bpd), is being implemented with a $240 million investment from the private sector as the contractor.

During the groundbreaking ceremony for the development of the oilfields in the operational area of Naft-Shahr in the western province of Kermanshah, NIOC chief Hamid Bovard announced the increase in oil production capacity, stating that the $240-million project aims to develop and revitalize the border region.

Bovard highlighted the underdevelopment of the Naft-Shahr area in recent years, noting that the project seeks to develop small oilfields in the region and restore prosperity to border areas.

He emphasized that the development of these areas will not only enhance security but also bring progress and welfare to local communities.

The NIOC CEO explained that Naft-Shahr is host to one of the country’s oldest oilfields, with several smaller fields in the region currently undergoing development.

“The project is expected to increase Iran’s daily oil production capacity by 10,000 barrels and provide feedstock for the Kermanshah refinery,” noted the official.

Bovard added that the $240 million investment by the private sector is projected to become profitable within less than 20 months.

He also noted that the incumbent administration’s key policy is to utilize local workforce in projects, emphasizing efforts to leverage the capabilities of the region’s residents and present the project as a small gift from the government to the diligent people of the area.

The Soumar field is located in Kermanshah Province, 30 kilometers southwest of Gilan-e-Gharb, while the Saman field is nestled17 kilometers southeast of Naft-Shahr in Kermanshah Province.

Also, the Delavaran field is located in Ilam Province, 85 kilometers from the city of Ilam.