TEHRAN- With the signing of an Integrated Production Services (IPS) contract between Oil Exploration Operations Company and Dasht-e Azadegan Arvand Oil and Gas Development Engineering Company, a new chapter of synergy began in the field of protective production and increasing the recovery factor of the Azadegan oil field.

According to IRNA, the development of the Azadegan oil field—one of the priorities of the 14th government in the energy sector and in line with the revival, development, and exploitation of the country’s shared oil and gas fields—has now, after years of waiting and through the personal follow-up of the president, reached the implementation stage.

This oil field, the world’s tenth-largest field with 33 billion barrels of oil in place, shared with Iraq, has today become one of Iran’s main fronts of economic battle, because on the other side of the border, international companies such as America’s Chevron are extracting from this field, and this has made the speed of extraction by the Iranian side a strategic necessity in the oil industry.

Azadegan, which also holds the title of the world’s largest onshore shared oil field, has been more than ever in the center of attention following the president’s emphasis since last year on increasing oil production. Accordingly, on Sunday, a meeting to launch the executive projects of this oil field, comprising 55 wells, was held with the presence of Dasht-e Azadegan Arvand Company, Oil Exploration Operations Company, and Oil Engineering and Construction Company (OIEC), so that, with financing and a clear timetable, the field’s development operations could be implemented quickly.

Abbas Sarkari, CEO of Oil Exploration Operations Company, at this ceremony emphasized readiness for comprehensive participation in the development of the Azadegan field, announced the conclusion of an Integrated Production Services (IPS) contract with Dasht-e Azadegan Arvand Company, and stressed: “The Azadegan field is not only a national asset but is considered a symbol of the resilience and authority of the country’s oil industry in the current conditions. Therefore, the signing of the Integrated Production Services contract between Oil Exploration Operations Company and Dasht-e Azadegan Arvand Company marks the beginning of a new chapter of synergy to realize protective production and increase the recovery factor of this shared reservoir.”

Sarkari added: “Oil Exploration Operations Company, relying on specialized Iranian manpower and modern equipment, including eight 2,000-horsepower drilling rigs and 13 technical service units, is fully ready to accelerate the field development process as the executive arm of employers, beyond a commercial profit.”

He noted: “Fast, precise implementation of the project with high productivity in the Azadegan project is on the agenda, and this company is ready to execute well advancement operations in the form of 10 IPS and MOS contract packages.”

Stating that currently four drilling rigs ready to assist future oil industry projects are at the company’s disposal, he announced the predicted duration for executing the operations assigned to this company in the Azadegan oil field as 14 months.

Mohammad Ali Shafiei, CEO of Oil Industries Engineering and Construction Group (OIEC), also emphasized full cooperation across the entire upstream oil industry chain to accelerate the implementation of this national mega-project and said: “Azadegan development with this volume of investment is considered among the largest projects of the country’s oil industry and even the world, and this company is ready to place all its engineering and operational capacity at the service of this strategic project.”

Shafiei cited seismography and engineering studies, the drilling section, and technical well services among the capacities of this group for integrated support of the Azadegan development plan, and added: “The program for renovation and development of the drilling fleet and ancillary technical services is swiftly on the agenda, such that Oil Exploration Operations Company has concluded a contract for two 3,000-horsepower drilling rigs, and preparations for the addition of two more rigs have also been made.”

He added: “The supply and development of 1,500- and 2,000-horsepower rigs are also in the operational plans of this group.”

Esmaeil Gholampour, executor of the Azadegan oil field development plan at Petroleum Engineering and Development Company (PEDEC), also emphasized the necessity of full compliance of all well-related measures with the permits and comprehensive plan of National Iranian Oil Company, as well as observance of the highest health, safety, and environment (HSE) standards in the operational area, and said: “The Azadegan field is currently on the production line, and a significant share of the country’s crude oil is extracted from this area; therefore, the sensitivity of operations in the southern part is doubled, and any intervention and executive plan at the well level must proceed with utmost precision, speed, and without the slightest disruption in the continuous production process.”

He noted: “All development programs, artificial lift, and operations on wells must be implemented in accordance with the approved plan and official permits of National Iranian Oil Company, and no action outside this roadmap and determined framework will be permitted, so that the coordination coefficient among upstream bodies and the employer is maintained at the highest level.”

The executor of the Azadegan field development plan at Petroleum Engineering and Development Company emphasized full observance of health, safety, and environment (HSE) requirements and said: “Failure to observe safety principles and environmental standards in such sensitive fields can have irreparable and far-reaching consequences for the entire project and execution team. Therefore, partner companies and the project employer are expected to implement the highest level of supervision and special protective and safety measures.”

Mahmoud Aminnejad, CEO of Dasht-e Azadegan Arvand Oil and Gas Development Company, also stated that implementation of this strategic project has started after three years of uncertainty, announced the National Development Fund’s agreement to a $2 billion facility, and added: “The drilling and workover package for 16 new wells will soon be notified to Oil Exploration Operations Company.”

Recalling that a consortium consisting of Bank Melli, Bank Tejarat, Bank Mellat, Parsian Bank, Shahr Bank, the National Development Fund, and Petropars and Ahdaf companies formed Dasht-e Azadegan Arvand Company, he stated: “While, due to administrative complexities and delay in document approval, this consortium had reached the brink of dissolution and withdrawal of the banks’ capital, with the direct intervention of the president and the holding of strategic meetings with the presence of the oil minister and senior economic managers, this contract was finally ratified and its official activity permit was issued.”

Aminnejad referred to Azadegan as a strategic shared field and said: “If work is not carried out quickly within the next two years, the fate of the heavy missed-benefit losses we faced in South Pars will be repeated here against competitors; therefore, mutual trust between the employer and contractor, reducing redundant administrative procedures, and focusing on precise implementation of plans in the shortest possible time are on the agenda.”

He stated: “With the measures taken and the cooperation of the government’s economic bodies, there is no deadlock regarding securing financial flow for this project, and we expect contractors to be present in the field with maximum operational capacity.”

The CEO of Dasht-e Azadegan Arvand Company also announced the assignment of a new work package to the project’s execution chain and said: “In addition to the Integrated Production Services (IPS) contracts, a new operational package including 16 wells will be officially notified to Oil Exploration Operations Company, so that the daily extraction capacity from the reservoir is enhanced with greater acceleration.”

Emphasizing that the development of the oil industry must be tangible for the local residents of the region, he stated: “Considerable funds have been earmarked for developing employment infrastructure for local youth and upgrading health, educational, and welfare facilities in the Dasht-e Azadegan region, so that the field’s progress advances in step with the improvement of local people’s livelihood.”

MA