TEHRAN: National Iranian South Oil Company (NISOC) is planning to implement projects worth $645 million to raise oil recovery rate from oilfields. The company plans to implement 14 projects to establish gas injection stations, Shana reported. Once the projects goon stream, the gas injection capacity into oilfields run by NISOC is expected to increase by 16.3 million cubic meters per day.
The company injected over 36 million cubic meters of gas into its oilfields during March 20-June 20 to increase their recovery rate. About 80 percent of oilfields operational in Iran are in their second half-life and require 290 million cubic meters per day of gas re-injection to maintain the production level. Over 150 million cubic meters of gas should be injected daily to the country’s oilfields, as stipulated in Iran’s Fifth Five-Year Economic Development Plan (2011-16). The predicted figure is vital to prevent a fall in pressure and maintain the output in oilfields.
NISOC is considered to be the biggest crude oil producer in Iran accounting for 83 percent of Iran’s crude output and 16 percent of its natural gas production. The company is currently operating 45 small and massive oilfields in Iran’s southern areas. The company is accountable for production of 80 percent of the country’s oil and 16 percent of its gas output.
Earlier, Bijan Alipour, NISOC managing director told Shana that the company is planning to boost crude oil production during the current year which began on March 20. He said that NISOC has prioritized projects which are focused on enhancing production and, quality and capacity of the recovered oil. He said that the company managed to reach its pre-sanctions levels in crude oil production adding that NISOC supplies 1.6 mbd of Iran’s oil exports. He added that NISOC managed to add over 900,000 barrels to its output in less than six months.
Iran holds the world’s fourth-largest proven crude oil reserves and the world’s largest natural gas reserves and is considered to be one of the world’s top oil and gas producers. Prior to the sanctions, Iran exported 2.3 million barrels of oil a day. The sanctions reduced the figure to 1 million barrels. The economic sanctions against Iran were lifted on January 16. The Islamic Republic increased output by 0.4 million bpd following the lifting of sanctions in January. Iran’s exports have resumed to Europe while Asian buyers have also increased purchases.
The Iran Petroleum Contract (IPC) is a cornerstone of the country’s plan to raise crude production to the pre-sanctions level of four million barrels per day. Earlier, an Oil Ministry official said that the country is planning to attract some $185 billion to the oil and gas sector of the country through a new model of oil contracts. The International Energy Agency (IEA) said that Iran could increase its oil production capacity to four million barrels per day (bpd) soon.
