A specialized meeting introducing investment opportunities in oilfield development was held on Tuesday at the "Transformation in Investment and Development in Iran’s Upstream Oil and Gas" event. The session highlighted investment prospects in onshore and offshore oilfields across various regions of Iran, while also examining the challenges and advantages of developing these fields.

Increased production, investment forecasts 

Reza Aqebati, NIOC’s engineering and development director, noted that 35 gas fields and 41 oil fields would be introduced at the event. He projected an increase of 570,000 barrels per day (bpd) in oil production through $14.5 billion in investments in the southern oil-rich regions by developing the opportunities presented.

He added that the proposed projects at the event include a 278,000 bpd increase in the continental shelf oilfields, a 122,000 bpd rise in the Central Oil Regions Company, a 50,000 bpd boost in Pars Oil and Gas Company, and a 40,000 bpd increase in the Caspian oilfields.

Aqebati emphasized efforts to attract a wide range of investors, from small to large-scale, and highlighted the Namavaran field as one of the introduced fields. Despite its substantial oil reserves, its development involves unique complexities.

He noted that additional incentives and facilitations have been established for shared oil and gas fields compared to independent ones. Under the Seventh Development Plan Law, production-sharing agreements are now permitted, though the execution model must still be defined.

Higher ROI in oil projects 

Nasrollah Zarei, CEO of Petroleum Engineering and Development Company (PEDEC), pointed to increased return on investment (ROI) in oil projects and expressed hope for international openings to attract foreign investors to Iran’s oil industry. While the oil industry has never relied solely on foreign investment, he stressed the importance of transferring technology alongside capital through foreign participation.

He reiterated that the Iran Petroleum Contract (IPC) model has been in place for several years, with expectations for investors to enhance recovery rates using new technologies.

Boosting production and recovery in southern oil-rich regions 

Ebrahim Piramoun, CEO of the National Iranian South Oil Company (NISOC), noted that over 116 years of oil production in the region have not exhausted its potential, with significant opportunities remaining for investment in oil and gas production increases.

He stated that the primary goals are optimal production maximization and enhanced recovery rates. Some of Iran’s largest oilfields are in this region, and efforts are underway to improve their recovery rates.

Piramoun mentioned that Iran holds 185 billion barrels of oil, 110 billion of which are in the southern oil-rich regions, where the recovery rate has reached about 18%. Additionally, large untapped gas reservoirs in the Khami formation present high development potential.

Five exploration blocks introduced in Caspian 

Mohammad-Hossein Dastgir, CEO of Khazar Exploration and Production Company (KEPCO), confirmed the presence of oil in the Sardar-e Jangal field, stating that development is underway with two wells already drilled using the Amir Kabir semi-submersible platform.

He announced five selected exploration blocks in the Caspian region, with a $100 million investment planned for each. However, he noted that the required technology for the Caspian differs from other regions, leading to higher costs.

Recovery rate boost in Darkhoein field via gas injection 

Abdollah Azari Ahvazi, CEO of Arvandan Oil and Gas Company, highlighted the Darkhoein project, where simultaneous gas injection has raised the recovery rate to 25%. Water injection in the Azadegan field has also been studied and is deemed guaranteed for success.

He emphasized strong governmental support across all branches to reduce investment risks.

Steel, petchem firms eye gas field development 

Payman Imani, CEO of the Central Oil Regions Company, stated that the company handles most of Iran’s onshore gas production. He described the newly unveiled incentive packages for gas field development as unprecedented and expressed optimism about investor interest.

He noted strong interest from steel and petrochemical companies in gas field investments, with incentives including higher recovery rates, increased gas feedstock allocation, and other benefits.