As one of Iran’s largest onshore gas producers and a subsidiary of the Iranian Central Oil Fields Company (ICOFC), South Zagros Oil & Gas Production Company plays a vital role in meeting the country’s energy demand. Operating across six regions in Fars, Bushehr, and Hormuzgan provinces, the company manages production from 10 active gas fields and three oil fields, maintaining readiness to ensure stable gas supply throughout the cold season.

A key focus of the company’s operations is conducting comprehensive overhauls and preventive maintenance on pipelines, facilities, and wells—measures that not only enhance worker safety but also safeguard gas and condensate output during winter to prevent shortages for households and industries.

South Zagros Oil & Gas Production Company is also integrating digital technologies and smart pipeline systems, while supporting domestic manufacturing and knowledge-based companies to boost safety, improve production quality, and strengthen its preparedness for the energy demands of the winter season.

In an interview with Shana, Managing Director Mahmoud Mirbaqeri discussed the company’s readiness measures, operational and managerial challenges, and the role of local companies and equipment in maintaining steady gas production. Below are highlights from the conversation.

 Current Status of the Company

South Zagros Oil & Gas Production Company is one of Iran’s largest onshore gas producers under the ICOFC umbrella. It operates in six regions across Fars, Bushehr, and Hormuzgan provinces, overseeing production from 10 gas fields and three oil fields.

During the first half of this year, the company carried out about 182,000 man-hours of maintenance and preventive work on pipelines and processing facilities and conducted over 220 corrective and repair operations on oil and gas wells.

The company is prepared to produce an average of 162 million cubic meters of gas per day, along with 17,000 barrels of oil and 48,000 barrels of gas condensates—a combined daily total of about 65,000 barrels. With the upcoming commissioning of the Khartang field by ICOFC this winter, adding 3 million cubic meters per day to capacity, Zagros Southern expects to raise total production to 168 million cubic meters per day, as in previous years.

 Winter Preparedness

To prevent production declines during peak winter demand, several key projects are underway. The Varavi gas compression station, launched last year in cooperation with ICOFC, added about 4 million cubic meters per day to field output. The Homa compression station project, now over 90% complete, is expected to contribute another 4 million cubic meters per day once operational.

Additional gas compression projects at Shanol, Tabnak, and Dalan fields are included in ICOFC’s development plans and are scheduled for commissioning between 2028 and 2029.

 Overhaul and Maintenance

Despite intense summer heat, difficult field conditions, and a 12-day local conflict period, around 182,000 man-hours of repair work were completed on 30-inch Tabnak, 24-inch Aghar, and 48-inch Kangan pipelines. For the first time since 2016, the company performed intelligent pigging operations on its pipelines to identify weaknesses and plan targeted maintenance for next year, improving network safety.

Corrective actions on wells increased production by 2.3 million cubic meters of gas and 1,300 barrels of oil per day.

 Domestic Equipment, NTBFs

In line with the National Iranian Oil Company (NIOC) policy to prioritize domestic products, over 70% of downhole and wellhead equipment are sourced from Iranian manufacturers. Around 27 local contractors are continuously engaged in maintenance and service operations, underscoring the company’s strong support for domestic producers and knowledge-based firms.

 Development and Modernization Projects

The rapid gas field development plan, launched in 2021 by ICOFC, has resulted in the commissioning of the Day field (2.5 million cubic meters/day) and the Khesht field (10,000 barrels/day). The Khartang field is set to come online this year, while fields such as Pazan, Sefid Zakhor, Eram, and Madar are under review or development. Out of 29 undeveloped fields within the company’s operational scope, efforts are underway to attract domestic and foreign investment to activate them.

 Digital Transformation

In coordination with the ICOFC Research and Technology Center, digitalization studies have begun at Khangiran field (under East Oil and Gas Company), which will serve as a model for other fields. The ultimate goal is to apply digital and AI-driven management systems in production and operations.

 Safety and Workforce Welfare

Despite operating across three provinces and six complex regions, Zagros Southern has recorded no fatalities or major injuries in recent years. Alongside safety improvements, 13 welfare and sports projects—including recreational and athletic facilities—were approved last year to enhance employee well-being.

 Environmental Protection

Timely repairs and equipment upgrades have significantly reduced gas flaring this year. Projects are also underway to capture and recycle flare gases, such as a major initiative in Sarvestan, where flare gas is being converted into electrical power.

In water management, the company has upgraded its wastewater treatment systems and implemented recycling programs for irrigation, leading to substantial reductions in raw water consumption. Regular environmental monitoring and compliance with legal obligations further reflect its commitment to sustainability.

 Social Responsibility

Although the company has no independent CSR budget, it continues to support nearby communities through initiatives such as electrification of villages (Nar and Kangan), renovation of rural and nomadic schools, and repair of local health centers in operational areas.

 Workforce Motivation

South Zagros Oil & Gas Production Company’s workforce operates in some of the country’s most challenging terrains, maintaining gas output beyond expectations through teamwork and commitment.

 Vision for the Future

By 2030 (1408 in the Iranian calendar), with new development projects and field startups, Zagros  gas production capacity is expected to increase by 100–140 million cubic meters per day, establishing the company as a dynamic and leading energy producer in Iran.

 Final Message

“I kiss the hands of every colleague who works tirelessly to keep our people’s homes warm during winter,” Mirbagheri said. “I ask our fellow citizens to use gas wisely so we can maintain energy stability through efficient consumption.”