Iran inks $1.9 mn oil production deal

An Iranian official has announced the signing of a contract with O1 Company to produce crude oil from Azar and Changouleh oil fields near the Town of Mehran in the western Ilam Province.

Mehran Mayor Valiollah Hayati announced Saturday that a total of USD 1.9 million is to be invested in the project, IRNA reported.

He said the contract will be implemented in 55 months, adding however, that in 36 months, early production [of oil] at the two fields will hit 30,000 barrels per day (bpd).

The mayor went on to say that recent studies have shown that Azar oil field, at full capacity, will produce a total daily amount of 50,000-65,000 bpd of light crude oil with an API gravity of 32 for a period of 25 years.

Anaran oil block in Ilam Province, near Iran’s common border with Iraq, includes Azar and Changouleh oil fields.

Iran’s Azar oil field is shared with Iraq, where it is called Badra oil field. The independent Changouleh oil field, on the other hand, is located 20 km southeast of Mehran.

Iran shares oil and gas fields with most of its neighbors, including Iraq, Kuwait and Persian Gulf littoral countries, Qatar and Oman.

The country is also OPEC’s second largest oil producer and the fourth largest crude oil exporter. However, the country has moved in recent years towards becoming a major exporter of refined oil and petrochemical products with significant success.

Iran holds the world’s third-largest proven oil reserves and the second-largest natural gas reserves.