New contractual framework for low-yield wells

The average output of Iranian oil wells is 1.55 tb/d. Since the bulk of oil wells in Iran have already reached the second half of their lifecycle and would continue to see their production fall, the National Iranian Oil Company (NIOC) decided in 2021 to engage local technological companies to rehabilitate shut-in and low-yield wells. Amir Moqiseh, NIOC’s deputy director of investment and business, has said rehabilitation of each well would require $1 million, adding that a new model of contract, similar to the “Iran Petroleum Contract” (IPC), has been designed for low-yield and inactive wells.