TEHRAN (PIN) – National Iranian South Oil Company Managing Director Seifollah Jashnsaz Saturday said NISOC had produced 3.2 million barrels of crude per day on average since the beginning of current Iranian calendar year (started March 21, 2007).

“Of the figure, over two million barrels per day (mbpd) has been exported and the remaining part has been transferred to domestic refineries as their fuel and feedstock for producing byproducts,” he added.
Jashnsaz said refineries transformed crude oil to into gasoline, kerosene, gas oil, tar, and other oil products.
The official said NISOC currently accounted for over 80 and 40 percent of the total oil and gas production of the country respectively.
He added that NISOC had produced 19 thousand barrels of crude oil daily more than the figure targeted by the Petroleum Ministry.
“The Petroleum Ministry had defined maximum 3.211 million barrels of crude oil per day for NISOC in the current year, but the NISOC managed to yield 3.23 million bpd through round the clock efforts of staff in the vast oil-rich fields of the south.”
He referred to the implementation of 615 projects with a 77 trillion rial (8.3 billion dollar) budget in the southern oil-rich fields within three years, adding, “Some part of projects is underway and scores of them will be carried out in the near future.”
According to the NISOC chief, 70 percent of the fund would go for boosting the production capacity that would cover 209 projects.
Jashnsaz said NISOC faced no problem to put oil and gas projects into practice this year as it had received 10 trillion rial (1.08 billion dollar) budget for the purpose.
The managing director said the company was currently supplying the feedstock of some petrochemical plants in Bandar Imam, southern city of Mahshahr.
“NISOC is producing 153 thousand barrels of gas liquids a day and dispatches to petrochemical complexes,” said the official.
He said the projects on collection of associated gases were of great importance as they served environmental and economic interests.
“Amak plan is among the country’s big projects in the southern oil-rich fields,” said Jashnsaz, adding Amak alongside Kupal, Marun 3, and Ahvaz 1-3 plans had become operational and Mansuri and Ab Teimur projects were undergoing final stages and would be expected to come on stream by the end of current Iranian calendar year (March 19, 2008).
“The company is planning to produce 40,000 barrels per day crude oil from Azadegan field,” said the NISOC managing director.
Jashnsaz added preliminary studies on the plan were being carried out by NISOC and Petroiran Development Company.
He said that major objectives of the plan included using investments optimally, obtaining needed information, producing 20,000 barrels per day crude oil in the first stage, testing production, using oil revenues, and starting early production in six months.
“Thus far, three wells have been repaired totally and are producing 3,000-4,000 barrels of crude oil per day, two wells are being repaired, and another well will be repaired soon,” he said.
The official added that the plan started in late July and early production would begin in late January 2008.
“Two plans have been considered for development of Azadegan oilfield, which include boosting production capacity and building independent desalting facilities and experts have opted for the second option, which will increase the field’s output to 50,000 barrels per day,” he said.
“Therefore, 12 new wells are to be drilled and 100 km 16-inch pipeline will be constructed up to Ahvaz at the estimated cost of over 2.28 billion rials,” he explained.
He said NISOC, as Iran’s largest oil and gas producer, was purchasing its needed equipment from 100 local manufacturers.
Jashnsaz told PIN that NISOC aimed at supporting and strengthening domestic industries and industries, saving foreign currencies, and reviving and promoting self-sufficiency and self-confidence culture among local producers.
“The company also identifies domestic manufacturers particularly in the southern province of Khuzestan to provide the required parts of oil industry in the southern region, promotes the quality of small workshops’ products, and turns them to large technical and engineering plants,” said Jashnsaz.
The NISOC head added the development of local industries had helped create job opportunities and speed up the supply of equipment through having immediate access to manufacturers.
He referred to a 33 million dollar contract on manufacture of seamless pipes NISOC signed with National Iranian Steel Industrial Group last year and added, “There is no limitation for support of domestic industries and producers that have the capacity to manufacture products in conformity with international standards.”