Azadegan oil Field Developement

Azadegan Oil Field Development

Ø Geographical location of the field: 70 km southwest of Ahvaz, 30 km west of Jofier Field and near the Iran-Iraq border.

Ø Area: 1500 square kilometers (the length of this field is more than 60 kilometers and the width of this field is 11 to 20 kilometers)

Ø Client: National Iranian Oil Company

Ø Project Developer: Arvand Azadegan Oil and Gas Development Company

Ø Current developer: Petroleum Engineering and Development Company (PEDEC)

Ø Current operator: Arvandan Company

Field Exploration Status:

Ø Drilling of the first Delineation/Appraisal well of the field in 1976

Ø Drilling of the second well in 1999 by NIOC resulted the proof of oil in this field

Ø Proof of 4 oil layers in this field so far

Oil in place:

Ø Total volume of 32 billion barrels (including 6 billion barrels in the northern part and 26 billion barrels in the southern part of the field

Ø With natural production, only 5% of this capacity can be extracted.

Ø Current production capacity of the field: 190 thousand barrels per day.

The main achievements of Azadegan project

Ø The largest investment project of the government in terms of domestic financing
Ø Increasing the production capacity of the field from 190 thousand barrels per day to 570 thousand barrels per day (3 times Production increase of the field)
Ø Creation of 24 thousand direct and indirect jobs
Ø Creating cooperation and joint investment experience between private and public banks and the National Development Fund of Iran and domestic Exploration and Production Companies
Ø Offering part of the shares of this project company to the stock market and creating public participation in providing Capital and reducing liquidity and inflation
Note: The increase in capacity by the National Oil Company by drilling 42 new wells and production from 190 thousand barrels per day to 220 thousand barrels per day from the second year and using this difference in field income to cover part of the field development costs and as a result help the decreasing process of financing by the members of the project company.

Azadegan Existing Facilities

Ø The number of existing wells is 166 rings (110 in the south + 56 in the north)

Ø The processing center of the northern part of Azadegan

Ø Skid Mounted Southern part of Azadegan

Ø The northern and southern clusters of Azadegan

Ø West Karun processing unit

Ø The processing center of the southern part of Azadegan (under construction)

Definition of the new Azadegan joint Oil Field Development project and the new scenario

The development of Azadegan oil field, as the largest common Oil Field in the country, has always been the agenda of different governments. For this purpose, during the past years, various plans and scenarios have been defined for the development of this important and vital field of the country.

In this regard, the NIOC, by re-examining the strategic, technical, legal and investment aspects of this national plan, seeks to simultaneously develop the second phase of North Azadegan and the second phase of South Azadegan with a single Employer perfomring the integrated management of the reservoir.

For this purpose, for the execution of this huge National project, a partnership has been defined by NIOC between public and private banks and some domestic E&P companies in the form a company to be responsible for the Comprehensive Development of this Field and with an investment of about 7 billion dollars, the daily production rate of about 190 thousand barrels per day to be increased to 570 thousand barrels per day.

Azadegan Arvand Oil and Gas Development Company

The share amount of each member of the consortium and the Company has been approved by the partners as follows:

1	Bank Melli Iran	18.6 %
2	Tejarat Bank	18.6 %
3	Mellat Bank	18.6 %
4	Parsian Bank	16.6 %
5	Shahr Bank	9.8 %
6	National Development Fund of Iran	12.4 %
7	Oil & Gas Development Company	3.6 %
8	Petropars Co.	1.8 %