Eight contracts worth $1.2 billion were signed between the National Iranian Oil Company and Iranian contracting companies for the oil production capacity maintenance and increase plan.

According to the National Iranian Oil Company’s information website, these contracts, which were signed today (Monday, January 12) in the presence of the Minister of Oil and the CEO of the National Iranian Oil Company, include seven contract packages for the Bink, Solabdar, Lali Bangestan, Gachsaran 3 and 4, Golkhari, Bibi Hakimeh and Ahvaz 2, 3 and 5 fields of the National Oil Company of the Southern Oil Regions in the provinces of Bushehr, Fars, Khuzestan and Kohgiluyeh and Boyer Ahmad, and the contract package for the Reshadad field of the Iranian Offshore Oil Company in the maritime area of ​​Hormozgan province in the Persian Gulf.

The contracts for the Golkhari, Gachsaran 3 and 4, Bank, Bibi Hakimeh, Solabdar, and Lali Bangestan blocks were signed with the North Drilling Companies (Sina Energy Gostar Holding), Iran Offshore Engineering and Construction Company, PetroIran Development, Arak Machinery Partnership, Qeshm and Maroon Karan Oil and Energy Industries Partnership, National Iranian Drilling Company, and Jahanpars Engineering and Construction Company, respectively, and the contract for the Ahvaz 2, 3, and 5 and Reshadad blocks was signed with Khatam al-Anbia Headquarters.

According to the report, while pursuing the conclusion of contracts for the development of the country’s oil and gas fields in the form of a new upstream contract (IPC) model, the Oil Production Maintenance and Increase Plan was also put on the agenda of the Ministry of Oil and the National Iranian Oil Company with the aim of creating jobs for domestic contractors and manufacturers, as well as maintaining and increasing production from the country’s oil fields. This plan includes 33 projects, including 29 onshore projects and 4 offshore projects. The total investment costs foreseen in this plan are equivalent to $6.2 billion, and including financing costs, the repayment figures in the government’s commitment will amount to $7.2 billion. The projects of this plan will be implemented in the geographical area of ​​​​7 oil-rich provinces of the country: Kermanshah, Ilam, Khuzestan, Kohgiluyeh and Boyer Ahmad, Bushehr, Fars and Hormozgan, and it is expected that their implementation will increase the country’s crude oil production by an average of 280,000 barrels per day.

In February 2018, in the first phase of awarding these projects, the National Iranian Oil Company prepared and published documents and held tenders for 10 projects from the project portfolio, which led to the conclusion of 10 engineering, procurement, construction, installation and drilling (EPC-EPD) contracts worth approximately $800 million. In 2019, in parallel with the implementation of the first phase of the project, the National Iranian Oil Company prioritized the holding of tenders for 13 second phase projects with a contract value of approximately $1.7 billion. Upon completion of the relevant tender process and determination of their winners, they were awarded to selected contractors in August 2020, and are currently gradually entering the implementation stages after completing the engineering and procurement phases.

From the end of 2019 to mid-2020, tenders and contractor selection for 8 projects in the third phase of the plan were on the agenda. These projects, worth over $1.2 billion, are located in the operational area of ​​the National Southern Oilfields Company, including the Binak, Solabdar, Lali Bangestan, Gachsaran 3 and 4, Golkhari, Bibi Hakimeh, and Ahvaz 2, 3, and 5 fields in the provinces of Bushehr, Fars, Khuzestan, Kohgiluyeh, and Boyer Ahmad, and the operational area of ​​the Iranian Offshore Oil Company, including the Reshadad field in the offshore area of ​​Hormozgan province in the Persian Gulf. It is worth noting that the total value of the 31 contracts awarded for this plan so far exceeds $3.7 billion, which will include drilling 253 new wells and repairing 130 existing wells. Currently, the awarding stages for the final 2 projects of this plan are also underway, and these projects will soon be awarded to selected contractors.

News source: Oil Company Information Database

News date: 10/22/2019

News link: Oil Company Information Database