Monday, 11 July 2011

Iran will invest $18b to boost south's oil output

Iran will invest some $18 billion in southern oil-rich part of the country during the Fifth Five-Year Development Plan (2010-15), said deputy oil minister for planning and supervision on hydrocarbon resources.
Mohsen Khojasteh-Mehr further said that until the end of current Iranian year (March 20, 2012), about $3 billion will be invested in the region, Shana reported.

"Most of the funds will be procured domestically. During a recent visit of Oil Ministry's caretaker to Khuzestan province, Mohammad Aliabadi underlined the priority for developing joint fields in this region," he noted.

Joint fields are the top priority for investment and development and Oil Ministry will try to safeguard its resources in the best manner, said Khojasteh-Mehr.

Yadavaran Oilfield
"Yadavaran oilfield will reach early production stage by this fall and production will begin with 20,000 barrels per day (bpd). By March 20, 2013 this figure will increase to 85,000 bpd," said the official.
There are some eight new wells in this oilfield, he said, adding at present, five new wells and three repaired wells are ready.

The official recalled that to expedite the development of joint fields, a number of plans have been drawn up and the ministry has set the target for producing three million bpd of oil from southern oil-rich regions.

"If this target is achieved, some 75 percent of the oil production will come from southern oil-rich regions," he said.

He noted the renovation of old installations and fields in this region is underway and the progress in renovating installations of Aghajari oilfield is quite favorable.

According to the official, new drillings, maintenance and completion of wells and desalination plans are among the priority plans in the region.

Earlier in May, Khojasteh-Mehr said some $150 billion will be channeled to the country's upstream oil and gas sector during the Fifth Five-Year Development Plan.

The investment will bring in $179 billion in five years, IRNA quoted Mohsen Khojasteh-Mehr as saying at the time.

Around $100 billion of the total $150-billion investment will be funded from foreign investments and local bank loans, he further explained.

The remaining $50 billion will be provided by Iran's Oil Ministry, he noted.

"Thirty-two billion dollars (of the total sum) will be set aside for maintaining production and logistics, $4billion for oil and gas exploration, $34 billion for the development of oil fields, $75 billion for the development of gas fields, and $5 billion for the development of the midstream sector," the official said.
He reiterated that if the projected investment is realized, Iran's crude oil production will reach 4.7 million barrels per day, natural gas production will climb to 1.47 billion cubic meters a day, and daily production of gaseous condensates will stand at 1.2 million barrels.

Khojasteh-Mehr pointed out that investment can pave the way for purchasing modern technologies and tapping new management skills as well as technical knowhow.

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