Sepehr and Jofeir Oilfields Ready for Official Inauguration

The last stage of the production test in Sepehr and Jofeir oilfields in Khuzestan Province was successfully completed on Tuesday, the managing director of Pasargad Energy Development Company said.

“For the primary production in the fields, 12 wells have been drilled and all are now ready for the initial production of 21,000 barrels of oil per day,” Saeed Shad was also quoted as saying by IRNA.

Production tests are run to gauge well productivity and determine its flow capacity at specific conditions of reservoir and flowing pressures. Testing on oil and gas wells may be performed at various stages of drilling, completion and production for a variety of different purposes.

“So far, more than $330 million have been invested for its early production, which will increase to $440 million in Phase I. The total amount of investment to complete all phases will amount to $2.8 billion,” he added.

The amount of oil that can be extracted from Sepehr and Jofeir oilfields

It should be noted that the amount of oil that can be extracted from the fields is estimated at 540 million barrels.

The fields’ production capacity is expected to reach 35,000 barrels per day as soon as the first phase operations are carried out.

The companies implementing these projects

The implementation of the second phase will help increase production capacity by three times. It is very likely that a new hydrocarbon layer could be discovered in the fields.

Pasargad Energy Development Company (PEDC) is implementing the plan with the help of domestic firms, namely Petroleum Engineering and Development Company, Tadbir Drilling Development Company, Pezhvak Energy Company and Iran International General Contractor Company.

The National Iranian Oil Company finalized an agreement with PEDC to develop the oilfields in 2018.

As per the agreement, PEDC was commissioned not only to drill 130 wells and lay pipelines, but also to equip wells with submersible pumps, oil separators and enhanced oil recovery methods to raise output.

PEDC, a subsidiary of Bank Pasargad, is active in offshore drilling (jackup rig operation), general contracting (oil and gas exploration and production) and pipe manufacturing.

Sepehr Oilfield is a reservoir in the West Karoun oil block in Khuzestan. According to estimates, Iran needs to spend $1 billion to tap into the field’s 300 million barrels of proven reserves.

Jofeir Oilfield is 50 kilometers west of the city of Ahvaz and contains gas deposits.

A memorandum of understanding has been signed between the National Iranian Oil Company and four banks, namely Bank Pasargad, Eghtesad Novin Bank, Mellat Bank and Tejarat Bank, based on which they are expected to invest close to $12 billion in oil and gas projects.

Published: Apr 19, 2023

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