New Contracts for Dey, Sefid Zakhour Fields

The objective behind the development of Dey and Sefid Zakhour gas fields is to produce 5.1 mcm/d and 10 mcm/d of gas respectively, and the delivery of gas processed at Farashband refinery to Iran Gas Trunkline (IGAT) 2 and 3 for supplying national needs.

Dey is located 60 kilometers south of Firouzabad and 140 kilometers south of Shiraz in the southern Fars province. Dey which is estimated to contain 2.6 tcf of gas is close to Aghar and Dalan gas fields.    

Sefid Zakhour which is located near the city of Qir in Fars Province holds 5.6 tcf of gas in place, 8.5 bcf of which is recoverable. If 17 wells are drilled in this area 30 mcf/d will be recovered from this field.

Development of these fields needs investment and state-of-the-art technology and that is why these two reservoirs were introduced as opportunities for investment during a conference held earlier this year on Iran's new model of oil contracts.

Sefid Zakhour which measures 40 kilometers long and 8 kilometers wide is situated 150 kilometers southeast of Shiraz.

According to studies conducted by the Reservoir Engineering Studies Office of National Iranian South Oil Company (NISOC), Iran plans to recover 15.1 mcm/d of gas from these fields after drilling seven new wells and workover of two wells in Seif Zakhour and drilling four new wells and workover of one well in Dey.

According to surveys, delivery of gas and gas liquids from Sefid Zakhour field to Farrashband refinery will be done trough two pipelines of 20 and 6 inches in diameter.

The gas produced at Dey field will be delivered to Farrashband refinery after being gathered.

Upstream development of Dey and Sefid Zakhour fields need acquisition of land for the construction of pipelines and drilling of wells, completion of two wells, drilling and completion of 11 new wells, purchase of wellhead commodities and installations, building wellhead pipelines, establishing gas and condensate separation units in Sefid Zakhour, installation of two pumps for the delivery of condensate from Sefid Zakhour, purchase and installation of pigs and installation of double butterfly valves.

The Board of Directors of National Iranian Oil Company has given the go-ahead for the initial production of 13.2 mcm/d of gas from Dey and Sefid Zakhour gas fields with a budget allocation of IRR 1,645 billion plus $159 million.

In the light of change in flow from 13.2 mcm/d to 15.1 mcm/d and changes in the nature of fluid produced by Sefid Zakhour field, the NIOC Board of Directors has given its nod to a budget allocation of IRR 1,572 billion plus $272.65 million.

Given the decline in the feedstock supplied to Fajr Jam refinery and the plan for supplying feedstock to this refinery from adjacent fields, gas delivery from Sefid Zakhour to Fajr Jam refinery with the objective of making up for feedstock shortages of the refinery is currently under review.

In case of final approval, the planned gas delivery from Sefid Zakhour to this refinery, more than IRR 822 billion will be required for the upstream development of this field.

After the start of drilling operations in the second half of the calendar year 1384, the first exploration well was drilled up to the depth of 5,271 meters.

The Exploration Directorate of NIOC managed to explore sweet gas in different layers of Kangan and Dalan. As a result, the reserves in this field were increased to 4.11 tcf.

Sefid Zakhour is estimated to hold 205 million barrels of gas condensate. Its gas recovery rate is 75% and its condensate recovery rate is estimated at 35%.