West Karoun, Iran Oil Hub
The name of West Karoun area is being bandied about. The reason is clear. Several important oil fields – North Azadegan, South Azadegan, Yadavaran, North Yaran and South Yaran – are located in this area. Oil experts believe that Iran's new oil hub will take shape in West Karoun area whose oil fields Iran shares with neighbors.
West Karoun area has great potential for oil exploration and it can revolutionize Iran's oil production capacity.
Operations have already begun for the development of West Karoun oil fields in western Iran. The client is Petroleum Engineering and Development Company (PEDEC) and Iranian and Chinese contractors are developing these reservoirs.
At present, 225,000 b/d of oil is being extracted from West Karoun fields. This figure is forecast to soar to 315,000 b/d by next March.
Iran Petroleum, whose correspondent recently visited West Karoun oil fields, provides a review of the oil reservoirs.
The latest achievement of PEDEC in West Karoun is the startup of the first phase of North Azadegan oil field with a capacity of 75,000 b/d. North Azadegan oil field shared by Iran and Iraq is located 120 kilometers west of the oil-rich city of Ahvaz.
In addition to common problems, development of this field was facing the big challenge of Hoor al-Azim Lagoon and environmental issues. A large segment of North Azadegan lies in the lagoon and PEDEC has modified drilling methods in order to protect the environmentally significant lagoon.
North Azadegan Starts Production
Keramat Behbahani, director of North Azadegan development project, said oil and gas production from this field averages at 73,000 b/d and 39 mcf/d, respectively.
"Oil production from this field started four months ago and so far more than five million barrels of oil has been recovered," he said.
Behbahani said some delays in the implementation of the project pertain to getting environmental and local permits, adding: "Drilling operations in this field were specific because a significant part of this field in Hoor al-Azim Lagoon. we were 4 to 5 meters deep in water in some spots and in practice we were facing an offshore environment."
"Moreover, due to environmental considerations, cluster drilling was done in order to spare the lagoon any harm. A total of 58 wells were spudded in 21 drilling beds," he said.
Behbahani referred to the existence of an independent power plant in North Azadegan field, describing it as a valuable contributor to sustainable production of this field.
"Despite the existence of this power plant, production will never stop at North Azadegan except during overhaul which is done every four years," he added.
Behbahani said the second phase of this project envisages production of 75,000 b/d of crude oil and 39 mcf/d of gas.
He said negotiations are under way with China's CNPCI for the development of the second phase of North Azadegan field.
"After examining the MDP proposed by the Chinese company to PEDEC and its approval, development of the second phase will start under a buy-back deal. In case of no agreement with CNPCI, the second phase development will be done under Iran Petroleum Contract (IPC)," he added.
Behbahani said all issues related to health, safety and environment (HSE) are observed in the development of North Azadegan, citing 49 million persons/hours of work without any accident there.
According to preliminary studies, North Azadegan is estimated to hold 6.5 billion barrels of oil in place, 330 million barrels of which is recoverable. New studies suggest an increase in the in-situ reserves of this field. In the first phase, North Azadegan will be able to produce 82,500 b/d.
110,000 b/d Soon
North Azadegan shot to prominence two years ago after Iran’s Minister of Petroleum Bijan Zangeneh decided to cancel the contract with CNPCI because the Chinese company did not observe its obligations