The Petroleum Engineering and Development Company (PEDEC) outlined on Monday that it has awarded contracts to Petropars Group (Petropars) worth $1.26 billion.
According to PEDEC, a deal worth $961 million was signed relating to the completion of the development of the South Azadegan joint venture. This contract aims to increase the daily production capacity of the field to 320,000 barrels of crude oil in 30 months, PEDEC highlighted.
An additional deal worth $300 million was also signed for the construction of a 320,000 barrel per day (bpd) central treatment export plant at Azadegan. This would be the largest oil and gas processing unit in Iran, according to PEDEC.
The development of the South Azadegan joint field, which is located in the West Karun region, near the Iraqi border, began in 2014 when the National Iranian Oil Company (NIOC) signed a deal with a Chinese company, PEDEC noted. The business added that, “after foot-dragging and failure of the Chinese firm to complete the project”, NIOC expelled the company.
The South Azadegan field’s current production capacity is said to stand at 140,000 bpd. Back in 2013, this figure was said to be 45,000 bpd. So far, over 171 wells have been spudded in the field, PEDEC outlined.
Established in 1994, PEDEC describes itself as the development arm of NIOC. According to its website, the company studies and operates development projects to explore, extract, and produce crude oil, natural gas, and other solid and liquid hydrocarbons to meet NIOC’s requirements, improve upstream technology and make the most of local sources in the implementation of projects.
Set up back in 1998, Tehran-based Petropars is an engineering and knowledge-based company, its website states. The company’s vision is to become an international exploration and production business, according to its site.
To contact the author, email andreas.exarheas@rigzone.com
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