Iran’s state-owned Petroleum Engineering and Development Co. and the local contractor Persia Oil and Gas Industry Development Co. inked a $300 million contract to develop the Yaran oil field. The developers expect to pump about 39.5 million barrels of crude from the field within ten years. The development covers drilling six wells, a descriptive well, and a drilling well. It also involves installing enhanced oil recovery plan (ESP) in 27 wells, repair of five wells, and revamping ground facilities.
The Yaran oil field is located in the Iranian southwestern province of Khuzestan. It is shared with Iraq’s Majnoon oil field. Persia Oil and Gas has been developing the northern Yaran, producing 30,000 barrels of crude a day since 2016. Meanwhile, production in the South of the region started in 2017. The project is expected to provide Iran with an additional $2 billion of income.
The project is part of Iran’s pursuit of raising oil production which came amid US sanctions. Iran’s Oil Minister Bijan Zanganeh, however, expects the sanctions to be temporary. Zanganeh in an interview with a local media said the sanctions had depressed Iran’s crude output, but Iran must continue development so when it can re-enter the market it can do it with full force.
