The National Iranian Oil Company (NIOC) investigated the proposal submitted by Pergas international consortium for development of Karanj oil field.
Pergas submitted its study results on Karanj oil field to the National Iranian South Oil Company (NISOC) earlier in October 2017.
The proposal was discussed in a meeting of the NIOC special advisory committee for management of the country’s oil reservoirs, Integrated Planning Department of NIOC said in a statement.
Reportedly, the proposal includes offers for increasing oil production and upgrading facilities as well as estimating the amount of needed investment.
Pergas International Consortium (PIC), comprising European, Asian and Canadian firms, established in 2001, has carried out many projects in Middle East, South East Asia and Africa over these years of operation.
NISOC signed a non-disclosure agreement (NDA) with Pergas consortium in December 2016 to study two oil fields and submit the study results and development proposals to NISOC within six months.
Under the agreement, the consortium undertook studies in Iran’s Karanj (including Asmari, Pabdeh and Khami reserves) and Shadegan (including Asmari and Bangestan reserves) oil fields.
The NIOC committee also in its latest meeting discussed another proposal for development of Karanj oil field, submitted by MAPNA Group, an Iranian enterprise involved in power, oil and infrastructure projects. Last year, MAPNA signed an NDA with NISOC for development studies at three oil fields - Rag Sefid, Parsi and Karanj.
The NISOC, Iran's largest oil company, produces about 83 percent of crude oil and 16 percent of natural gas in the country.
Various companies have submitted proposals to NISOC for development of Karanj oil field; of them the NISOC finally selected Pergas and MAPNA proposals as the closest to its plan, according to the statement of Integrated Planning Department of NIOC.
The Karanj oil field, located in Iran’s southern Khuzestan Province, was discovered in 1963 and holds an estimated 9.6 billion barrels of in-place oil. It was yielding 200,000 bpd of nearly 34 degrees API crude at its peak, but its reserves were seriously depleted. So far, 40 wells have been drilled in the field in total.
The field is owned by the state-owned National Iranian Oil Company and is operated by the National Iranian South Oil Company.
World media monitoring