Oil and Gas Projects in Iran Gain Traction

Oil and gas projects involving foreign investors appear to be moving ahead in Iran, the country’s news agency Shana reports. Multinational heavyweights such as Petronas and Shell are said to have recently handed over technical studies on Iran's biggest oil reserve, Azadegan Oilfield in the southern part of the country to the National Iranian Oil Company (NIOC).

Noureddin Shahnazizadeh, managing director of Iran's Petroleum Engineering and Development Company, told the news agency the two companies will present the result of their surveys shortly. France's Total and Japan’s Inpex already have presented surveys about development of the oilfield, he said.

Since implementation of the Joint Comprehensive Plan of Action (JCPOA), opening Iran to the west in exchange for guarantees to freeze nuclear development, many projects have been floated as the country looks to ramp up crude output and invites bids for numerous major oil and gas projects to be developed by international energy companies.

With 37 billion bbl of oil, the Azadegan field is seen as the country’s largest oil reserve, which it shares with neighboring Iraq.

Iranian energy officials meanwhile have announced that gas production in the South Pars Energy Zone has increased considerably, with altogether 146.74 billion cbm of gas recovered in the fiscal year ended Mar. 20, 2017. In 2016, South Pars refineries produced a reported 521,753 t of graded sulfur, exporting large quantities. 

Implementation of new South Pars phases will further increase output levels and refinery products will provide raw materials to industries such as petrochemicals and plastics, Shana said.