Domestic firms to develop 28 southern oil reserves

January 1, 2020 - 14:52

TEHRAN – Managing Director of Iran’s Petropars Group, which is the Monitoring and Controlling (MC) body in a project for maintaining and enhancing oil production in 28 reserves operated by the National Iranian South Oil Company (NISOC), said the project will be completely handled by domestic firms.

“The project which includes more than a hundred sub-projects, including drilling of about 280 new wells and repairing hundreds of wells, could boost domestic trade and employment,” Shana quoted Hamidreza Masoudi as saying.

According to the official, the projects will be awarded under Engineering, Procurement and Construction (EPC) and Engineering, Procurement, Drilling (EPD) contracts, and all the funding will be supplied from domestic sources.

Major steps have been taken in this national project, including the planning and reviewing services, determining the implementation procedures, reviewing technical documentation and designs, presentation of the framework and confirmation of bidding documents, and etc., Masoudi said.

The official noted that following the government’s policies for supporting domestic production, in this project various financial facilities have been envisaged for contractors to supply materials and equipment.

Back in May, NISOC’s Managing Director Bijan Alipour announced a plan for the development of 28 oil reserves in southern Iran through operation-based contracts. 
“In this regard, 29 investment packages have been defined among which 11 packages received necessary licenses to go on tender” he said.

According to the official, with these reserves developed, the company's oil production capacity would increase by 340,000 barrels over the next two years.

Later in December, Alipour said NISOC has started implementing the program for maintaining and enhancing oil production in 28 reserves operated by the company.

“About 70 percent of the program is implemented in Khuzestan province [southwestern Iran] and 30 percent in other neighboring provinces in the vicinity of the National Iranian South Oil Company’s territory,” he said.

In the preparation and implementation of this program, promoting domestic production through the use of the domestic workforce, domestic technology, and Iran-made equipment has been a priority for NISOC, Alipour emphasized.

EF/MA

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