memorandum of understanding (MOU) was signed with Zarubezhneft on July 12, 2016
for the Russian company to study the Aban and Paydar-e Gharb fields under the
newly developed model of oil contracts (IPC) with a view to accelerating oil and
gas fields Iran shares with neighboring countries.
the purpose of improving recovery and increase production from these two
fields, the current agreement is signed between the National Iranian Oil
Company (NIOC) on one side and Zarubezhneft and its Iranian partner Dana Energy
on the other for a period of ten years.
agreement is meant for the two fields to produce up to 48,000 b/d with an
accumulated output of 67 million barrels over ten years. The agreement is
subject to renewal upon request by parties hereto.
Russian company has an 80% share of the deal with the rest going to its Iranian
jobs envisaged to be carried out under this agreement include conducting
engineering studies, workover of wells and their equipment with downhole pumps,
reconstruction, repair and renovation of existing installations, installation
of separator, installation of multiphase flowmeter, and transforming a
production well into a waste injection well in Phase 1, and purchase and
installation of oil, gas and water transmission unit, drilling eight appraisal/production
wells, purchase and installation of downhole pumps, installation and operation
of separator, conducting 3D seismic studies, and drilling relief wells in Phase
CAPEX calculated for the development of Aban and Paydar-e Gharb fields is
estimated at $674 million (including direct capital, and downhole pumps repair
and replacement costs). Indirect costs are estimated at $68 million.
operational, this project will create technical jobs on a large scale in Ilam
Province, particularly workshops to repair and rebuild ESP pumps for the first
time in that area. Furthermore, Zarubezhneft is expected to apply its enhanced
oil recovery (EOR) technology in these fields so that the Iranian parties would
learn about the technology and its application.