Iran to implement $645M projects to boost oil recovery rate

By Azernews

By Nigar Abbasova

The National Iranian South Oil Company (NISOC) is planning to implement projects worth $645 million to increase oil recovery rate at its oil fields. Some 14 projects for construction of gas injection stations are planned to be implemented by the NISOC, SHANA news agency reported.

Once the projects are implemented, the gas injection capacity into oil fields, run by NISOC is expected to rise by 16.3 million cubic meters per day. The company injected over 36 million cubic meters of gas into its oil fields during the first three month of current fiscal year (March 20-June 20) to increase their recovery rate.

About 80 percent of Iran’s active oil fields are in their second half-life and need 290 million cubic meters per day of gas re-injection to maintain the production level.

Over 150 million cubic meters of gas should be injected on a daily basis to the country’s oil fields, according to the Islamic Republic’s Fifth Five-Year Development Plan (2010-2016). The predicted figure is vital to prevent pressure fall and maintain the output in oil fields.

NISOC is considered to be the biggest crude oil producer in Iran, which accounts for 83% of Iran’s crude output and 16% of the country’s natural gas production. The company is currently operating 45 small and massive oilfields in Iran’s southern areas. The company is accountable for production of 80 percent of the country’s oil and 16 percent of its gas output.

Earlier, Bijan Alipour Managing Director of NISOC told Shana that the company is planning to boost production of crude oil during the current calendar year which began on March 20. He mentioned that NISOC has prioritized projects which are focused on enhancing production and, quality and capacity of the recovered oil.

He also said that the company managed to reach its pre-sanctions levels in crude oil production adding that NISOC supplies 1.6 mbd of Iran’s oil exports. He added that NISOC managed to add over 900,000 barrels to its output in less than 6 months.

Iran holds the world's fourth-largest proved crude oil reserves and the world's second-largest natural gas reserves and is considered to be one of the world’s top oil and gas producers. 

Before the sanctions were introduced, Iran exported 2.3 million barrels of oil a day. The sanctions reduced the figure to 1 million barrels. The economic sanctions against Iran were lifted on January 16.

The Islamic Republic increased output by 0.4 million bpd following the lifting of sanctions in January. Iran’s exports have resumed to Europe, and Asian buyers have also increased purchases.

The Iran Petroleum Contract (IPC) is a cornerstone of the country’s plan to raise crude production to the pre-sanctions level of four million barrels per day. Earlier, Iran’s Deputy Oil Minister for International Affairs told Trend that the country is planning to attract some $185 billion to the oil and gas sector of the country through a new model of oil contracts.

The International Energy Agency (IEA) said that Iran could increase its oil production capacity to 4 million barrels per day (bpd) by the end of the decade.