Foreign investment in development of North Azadegan oilfield is conditioned on preserving the national interests of Iran, Keramat Behbahani, the operator of project for developing the oilfield, told the Tehran Times on Sunday on the sidelines of a one-day tour of journalists visiting progress of the project.

North Azadegan is one of the five oilfields, dubbed the West Karoun oilfields, Iran shares with Iraq at the western part of Iran’s southwestern region of Karoun. 

“In this due, we attach priority to each country that brings technology, creates jobs for our people, produces the products and brings the profit at the lower cost,” Behbahani explained.

“In addition, we never give up our ownership of the oilfield under any circumstances, as fortunately we haven’t ever done so,” the official stressed.

The project of developing North Azadegan oilfield is divided into two phases, each aimed at producing 75,000 barrels per day (bpd) of oil and 39 million cubic feet per day of gas.

The oil in place amount of North Azadegan is put at 5.68 billion barrels in the first phase and 6.3 billion barrels in the second one.

The first phase was launched in 2009 and started production 100 days ago, according to the operator of the project.

“We have produced 72,000-73,000 bpd of crude oil, mainly heavy crude, in the first phase during the past 100 days and we will achieve the target of 75,000 bpd within the next month,” Behbahani announced in a press conference held during the journalist’ visit to the oilfield development project. 

“We can also increase the current capacity by ten percent to 82,500 bpd,” he highlighted.

“We also achieved the goal of digging 58 oil wells in the first phase,” he added.

Iran’s Petroleum Engineering and Development Company (PEDEC) has a buy-back contract with China National Petroleum Corporation (CNPC) on implementation of the first phase of developing North Azadegan.  Based on the contract, the Chinese company has been given priority to carry out the second phase of the development project.

“We are negotiating with CNPC on making contract for implementation of the second phase. Our condition for the second phase is again a buy-back contract,” Behbahani stated, adding, “The Chinese company has the right to offer its proposal to National Iranian Oil Company (NIOC). If it was accepted the same procedure as for the first phase will be conducted for the second phase and if not, the contract for implementing the second phase will be introduced in the form of IPC [the new model of Iran's oil contracts, known as Integrated Petroleum Contract].”

Last month, NIOC Managing Director Ali Kardor said that his company's policy aimed at development of joint oil and gas fields is still atop agenda.

Also, in January Iranian Oil Minister Bijan Namdar Zanganeh said the country will increase oil production from joint fields with Iraq by 200,000 bpd to reach 700,000 bpd within eight months.

Iran has looked to reclaim market share since nuclear sanctions were lifted in mid-January.  Western sanctions cut Iran’s oil output to 2.7 million bpd from 3.9 million bpd. The sanctions barred foreign investments in the Iranian oil industry and also limited a low ceiling of 1 million bpd on the country’s oil exports.

Iran has regained about 80 percent of the market share it held before the U.S. and European Union tightened sanctions on its oil industry in 2012, according to Mohsen Ghamsari, the NIOC director of international affairs.

The country exports about 2 million barrels of its daily output of 3.8 million, the official said on July 12.