Iran officially revealed the framework of its new fiscal regime, the Iran Petroleum Contract (IPC), on 28-29 November at the Tehran Summit 2015, but many details are yet to be unveiled. In an attempt to revitalise the industry after years under sanctions, the National Iranian Oil Company (NIOC) has introduced 52 upstream oil and gas projects and 18 exploration blocks for local and foreign investment.
Tehran is looking to attract in the range of US$20 to 30 billion worth of capital investment in its upstream sector by 2018, to try to meet the NIOC's challenging production targets. It is aiming to increase its crude oil production capacity by 2 mb/d to 5.7 mb/d, and its gas production capacity by 7 bcfd by 2020. 29 oil fields and 23 gas reservoirs are to be offered in a combination of onshore, offshore, brownfield and greenfield, with close to a quarter being shared with neighbouring countries.
Whilst some of these fields were expected to be presented, the key surprises are the number of smaller onshore oil fields and big offshore heavy oil fields on offer. A few giant gas reservoirs are also on the list. Due to our extensive global research we have historical data on Iran’s upstream assets; our analysts have pulled the two top picks from the weekend’s announcement.
Iran oil and gas assets top prizes
Azadegan is the largest oil field discovered in Iran in the last 30 years, with estimated oil in place of between 31 and 40 billion barrels. It is located onshore, adjacent to the giant Majnoon field in neighbouring Iraq. Azadegan was discovered in 1998 and is 95 kilometres west of Ahvaz and 105 kilometres north of Abadan.
- Discovery Date 1998
- Issue Date 2004
- Production Started 2007
- Peak Oil Production (140,920 b/d) 2021.
Find out more about Azadegan South.
The Darkhovin (or Darquain) field was awarded to Eni under a buy-back contract in 2001. The field is located in south western Iran, 40 kilometres from the Abadan refinery and less than 20 kilometres from the giant Yadavaran field on the Iraqi border. The field contains oil reserves of around 1.4 billion barrels, in carbonate reservoirs of the Cretaceous Khami and Bangestan Groups.
- Discovery Date 1965
- Issue Date 2001
- Production Started 2003
- Peak Oil Production (145,470 b/d) 2011.
Find out more about Darkhovin.
None of the information contained in this report has come from any contact with the National Iranian Oil Company (NIOC) or the Iranian Government while sanctions preventing this have been in place.
Read more about the weekend’s announcement and access the list of available Iran assets in our Inform report.
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