NISOC Gears Up for Higher Crude Output

EghtesadOnline: In line with plans to increase oil exports, the National Iranian South Oil Company says it is willing to increase oil output to more than 3 million barrels per day, managing director of NISOC said on Friday.

News ID: ۷۴۰۸۱۸

08 April 2017

“To raise oil output, the oil minister [Bijan Namdar Zanganeh] should issue a directive. NISOC is prepared to ramp up production," Bijan Alipour was quoted as saying by ISNA.

"NISOC, the biggest domestic oil and gas supplier, produces 2.8 million bpd of oil, or 83% of Iran's total crude oil and 16% of its gas," the senior official noted.

According to Alipour, to raise crude output capacity and quality, a range of projects are being implemented, including exploration, drilling and repairing oil wells with the help of the National Iranian Drilling Company and construction of new crude oil desalting units, Financial Tribune reported.

Asked about ongoing ventures, he said oil desalters in Gachsaran and Bibi Hakimeh in Kohgiluyeh-Boyerahmad Province, with a processing capacity of 160,000 bpd, as well as in Ahvaz in southern Khuzestan Province with 220,000 bpd capacity, are expected to become fully operational in the present fiscal that started on March 21.

On international and domestic companies' role in developing fields in the southern oil-rich regions, Alipour said his company has signed MOUs with Schlumberger Ltd, the world's leading oilfield services provider, Pergas Consortium, a group of 11 international oil and gas companies, and Persia Oil and Gas Industry Development Co. to conduct studies on Karanj, Shadegan, Rag Sefid and Parsi oilfields near Ahvaz.

"Negotiations have been held with 33 international firms to cooperate in joint ventures and several MoUs have been signed," he added.

According to reports, NISOC has opened talks with BP Plc to enhance the rate of recovery from the above-mentioned fields. The company also signed agreements with Shiraz University, Islamic Azad University and state-owned Oil Industry Research Institute to help enhance the recovery rate in Abteymour, Bibi Hakimeh and Mansouri oilfields in the south.

Alipour said plans call for raising production capacity from joint fields with Iraq in an oil block known as the West Karoun in Khuzestan, by more than 10% in the first quarter of the present fiscal.

West Karoun, Iran's priority for raising crude production to restore market share lost under international sanctions, includes Mansouri, Yaran, Yadavaran as well as North and South Azadegan joint fields. The block holds an estimated 67 billion barrels of oil in place.

According to government data, Iran is now producing 3.9 million bpd of crude oil and gas condensates, a type of ultra light crude.