Teheran, 14 March - Neftegaz.RU. Zarubezhneft is the 1st Russian oil company to sign 2 IPCs (Iran Petroleum Contract) with the NIOC on March 14, 2018, iranian media reported. Aban oil field is located 38 kilometers southwest of the city of Dehloran and Paydare Gharb field is situated 35 kilometers from Cheshmeh-Khosh processing facility in Ilam Province. Both fields are jointly owned by Iran and Iraq.
A MOU was signed with Zarubezhneft on July 2016 for the Russian company to study the Aban and Paydare Gharb fields under the newly developed model of oil contracts (IPC) with a view to accelerating oil and gas fields Iran shares with neighboring countries.
Now, for the purpose of improving recovery and increase production from these 2 fields, the current agreement is signed between the NIOC on one side and Zarubezhneft and its Iranian partner Dana Energy on the other for a period of 10 years. This agreement is meant for the 2 fields to produce up to 48,000 b/d with an accumulated output of 67 million barrels over 10 years.
The agreement is subject to renewal upon request by parties hereto. The Russian company has an 80% share of the deal with the rest going to its Iranian partner.
The main jobs envisaged to be carried out under this agreement include conducting engineering studies, workover of wells and their equipment with downhole pumps, reconstruction, repair and renovation of existing installations, installation of separator, installation of multiphase flowmeter, and transforming a production well into a waste injection well in Phase 1, and purchase and installation of oil, gas and water transmission unit, drilling eight appraisal/production wells, purchase and installation of downhole pumps, installation and operation of separator, conducting 3D seismic studies, and drilling relief wells in Phase 2.
The CAPEX calculated for the development of Aban and Paydare Gharb fields is estimated at $674 million (including direct capital, and downhole pumps repair and replacement costs). Indirect costs are estimated at $68 million.
Zarubezhneft is expected to apply its enhanced oil recovery (EOR) technology in these fields so that the Iranian parties would learn about the technology and its application.