IOOC allocates $2.6b to boost offshore oil output

December 30, 2019 - 14:46

TEHRAN – Head of Iranian Offshore Oil Company (IOOC) says his company has 110 trillion rials (over $2.6 billion) worth of development and maintenance projects underway that are aimed at boosting the oil production from the country’s offshore fields by 85,000 barrels per day (bpd), IRNA reported on Monday.

According to Alireza Salman-Zadeh, the mentioned projects include drilling, repairing and completing 40 wells, construction, and installation of two wellhead equipment, completion and installation of five offshore platforms, construction of offshore pipelines and cabling and gas supply facilities.

Noting that all of the mentioned projects have been awarded to Iranian contractors, the official explained: currently, a project to maintain and increase oil production in Siri field in the Persian Gulf being carried out by an Iranian company is under a 12-trillion-rial (about $285 million) contract, based on which the contractor is going to drill two new wells in the Sivand and Esfand fields.

One of the important points regarding this contract is the supply of at least 60 percent of required drilling equipment by domestic manufacturers in accordance with international standards, which is an effective step in empowering domestic drill builders in the development of offshore fields, the official said.

Back in September, the former IOOC Head Hamid Bovard had said that his company saved nearly 300 million euros in its annual expenses since 2016 through structural modifications and regulations.

IOOC is one of the world's largest offshore oil producing companies, with over a half century of experience. 

The main operation area of Iranian Offshore Oil Company is the Persian Gulf where four other oil producing countries are located on the other side.