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Oil industry requires $100bn investment

Oil minister has said contractor companies would only receive agreed amounts if they increase the recovery rate in Iranian oil fields.

Oil industry requires $100bn investment
(Wednesday, October 5, 2016) 08:28

Bijan Namdar Zanganeh told the press on Tuesday morning that at least $100bn in investment were required to revive the industry to fresh conditions where Iran’s excavation companies would provide services to other countries. Zanganeh was speaking to the press on the sidelines of an agreement with Pars Oil and Gas Company (POGC) to work on four massive oil fields as the first deal after reforms introduced to overall scheme of oil contracts.

“Iranian domestic companies would provide engineering services in oil and gas to other countries; a priority is also put upon improving the well recovery rate of Northern and Southern Yaran, Koupal, and Maroun,” Zanganeh added. “The industry currently requires $100bn in upstream section; we believe mergers and new offshoots of excavation and exploration companies would not weaken the mother holding, but would also attract investments and facilitate inflow of new technologies; the ultimate outcome would be improved and increased production and revival of antiquated oil wells.”

Zanganeh also said that development of South Azadegan oilfield was a priority post-JCPOA times; “currently, the recovery rate in Sarvak formations in shared field is mere 5 per cent, virtually rendering the remaining 95 per cent to other predators; other fields including Rag Sefid, Asmari, Koranj, Pakdel, Shadegan, etc., are in the queue for new contractors, with 600 billion barrels of crude in West Karoun massive field, and with only 150 billion barrels extractable with current recovery rates,” he detailed.

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