Khuzestan Province is the most important oil-rich region in Iran, accounting for over 80% of the national oil supply. Whereas many big oil fields lie in this province, the process of oil production and its transmission is of strategic importance, and sophisticated infrastructure, centralized management, and specific security protection are required.
Bushehr is also home to numerous oil and gas fields, accounting for a significant share of oil and gas production and exports. Due to hosting oil terminals and petrochemical plants, Bushehr plays a key role in Iran’s oil and gas industry.
Mehr Field
The Mehr field, where only one well has been drilled, is among the undeveloped onshore oil fields. The Mehr anticline lies in the North Dezful area, exactly between the Paydar and Azadegan fields. Discovered in 2012, Mehr is a jointly owned border reservoir. The idea behind the development of this field targets its Asmari reservoir.
The type of contract proposed for the Mehr development is EPCF/EPDF, with the investee company being Iranian Central Oil Fields Co. (ICOFC). Mehr is estimated to hold 46 million barrels of oil in place with an API gravity of 14.5. The gas-to-oil ratio is estimated at 310 cubic feet. The investment envisaged for this field is estimated at $50 million. Capital and non-capital expenditures would be reimbursed after the targeted recovery is achieved, as long as the contract is in effect. Recouping financing by the investor would be done throughout the contract.
Zagheh Field
The Zagheh field lies 25 km northwest of Deilam Port and 40 km east of Hendijan. It lies at the border between Khuzestan and Bushehr Provinces. Located 6km from the Persian Gulf, it is in the southeast of the Rag Sefid oil field. Discovered in 1979 by Asco, Zagheh underwent development in 2004. It is one of the three Iranian oil fields with heavy crude oil. One well has already been spudded in this field.
The type of contract proposed for the Zagheh development is EPCF/EPDF, with the investee company being National Iranian South Oil Co. (NISOC). Zagheh is estimated to hold 1.729 billion barrels of oil in place with an API gravity of 15. The investment envisaged for this field is estimated at $70 million. Capital and non-capital expenditures would be reimbursed after the targeted recovery is achieved, as long as the contract is in effect. Recouping financing by the investor would be done throughout the contract.
Shour Field
Discovered in 1979, the Shour field is set for development in its Asmari reservoir. One single well has thus far been drilled in this undeveloped onshore field.
The type of contract proposed for the Shour development is EPCF/EPDF, with the investee company being ICOFC. Shour is estimated to hold 30 million barrels of oil in place with an API gravity of 26.8. The gas-to-oil ratio is estimated at 536 cubic feet. The investment envisaged for this field is estimated at $70 million. Capital and non-capital expenditures would be reimbursed after the targeted recovery is achieved, as long as the contract is in effect. Recouping financing by the investor would be done throughout the contract.
Genaveh Field
Discovered in 2022, the Genaveh field is targeted for the development of its Sarvak reservoir. One single well has thus far been drilled in this undeveloped onshore field in Busher Province.
The type of contract proposed for the Mehr development is EPCF/EPDF, with the investee company being NISOC. Genaveh is estimated to hold 17 million barrels of oil in place with an API gravity of 23. The gas-to-oil ratio is estimated at 301 cubic feet. The investment envisaged for this field is estimated at $75 million. Capital and non-capital expenditures would be reimbursed after the targeted recovery is achieved, as long as the contract is in effect. Recouping financing by the investor would be done throughout the contract.
Exploration well drilling in this field began in 2020. Liquid hydrocarbon was struck at a depth of 4,572 meters.
Bright Outlook
Iran has, for the first time in the history of its petroleum industry, introduced opportunities for investment all at once. That promises a shift from the dominant traditional view. Introducing a 10-point incentive package and shortening the time required for signing oil contracts has added to the attractiveness of investment in the Iranian petroleum industry. Furthermore, low extraction costs, extensive consumer market in the country, access to regional and global markets, and petrochemical growth potential would make the prospect for investment in the petroleum industry brighter than ever.
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