West Karoun Output Hike Plans under Way
CEO of Petroleum Engineering and Development Company (PEDEC) Touraj Dehqani has said plans are under way to boost production from a group of oil fields Iran shares with neighboring Iraq.
He said the joint oil fields located in West Karoun were currently producing over 300,000 b/d of oil.
Dehqani said PEDEC was determined to increase production from the Yadavaran oil field in coming months.
“In order to increase maximum efficient recovery, measures will be taken for further use of oil recovery potential in order to safeguard legal and contractual frameworks, while securing national interests,” he added.
The buyback contract for the development of the Yadavaran field was signed with China’s Sinopec in three phases. Phase 1 required 85,000 b/d output, Phase 2 180,000 b/d and Phase 3 300,000 b/d.
Feasibility studies conducted on Yadavaran indicate that the primary recovery rate from the Sarvak layer (heavy crude) is 6% and from the Fahlyan layer (light crude) is 14%. Yadavaran is estimated to hold 34 billion barrels of oil in-place. Phase 1 was inaugurated in November 2016.
Dehqani also touched on the agreement for the technological development of the Azadegan field in cooperation with the University of Tehran, saying: “The biggest achievement of reservoir technological study projects is transforming shadow value (hydrocarbon reserves) into real value. That can materialize through optimal management of installations, reservoirs and assets. Last year, for the first time we used the results of research and studies conducted by the University of Tehran in Azadegan and we are hopeful of future achievements and results of this research.”
2nd Downhole Pump in Yaran
Dehqani said an electrical submersible pump (ESP) had been installed in Well No. 4 of North Yaran for maintaining production from this joint field.
“Naturally, we need to wait for information on the performance of this pump,” he said.
According to PEDEC, this pump has been installed at a depth of 2,300 meters within the casing. The pump, which measures about 17 meters long, has an outer diameter of 4 inches.
The functionality of this pump would provide effective guideline in choosing method of production and enhanced recovery from the Sarvak reservoirs of West Karoun fields.
The North Yaran oil field development plan was inaugurated in November 2016 with a production capacity of 30,000 b/d. But the field experienced output fall-off after some time. Therefore, downhole pumps were again considered for the field. The first pump was installed in June last year, but nothing happened in practice. Now a second ESP has been installed and everyone is waiting to see how it would function.
South Azadegan Development
South Azadegan is the largest oil field Iran shares with neighboring states. After the contract for its development with China’s CNPCI was cancelled, PEDEC has been accelerating its output.
Dehqani said PEDEC administers development affairs in West Karoun, while Arvandan Oil and Gas Production Company (AOGPC) is in charge of operation. He said that West Karoun fields would be delivered to AOGPC after development under PEDEC authority.
He said: “During a period when the issue of new oil contracts and awarding developed and production together to contractors was on the cards, it was discussed that before new contracts have been signed for West Karoun fields, PEDEC would be temporarily in charge of production. But that target was not met; therefore, the procedures are back to their normal track.”
Dehqani said awarding South Azadegan project to AOGPC has already started and each section would be delivered stage by stage.
He said the first phase of the West Karoun power plant was also close to operation, adding: “Sustained oil production in West Karoun depends on a sustainable power supply. For this reason, it would be specifically important to launch the West Karoun power station. According to plans, the Yadavaran and West Karoun pumping station projects are to be supplied with electricity soon.”
According to Dehqani, despite a slight decline in oil production following recent floods, over 300,000 b/d of oil was recovered from West Karoun’s oil fields.
Gowreh-Jask Oil Pipeline
Dehqani also touched on a pipeline project to carry oil from Gowreh to Jask, cutting through the three provinces of Bushehr, Fars and Hormuzgan.
He said the strategic project would cost about $2 billion, involving 1,000 kilometers of pipeline, export terminal, pumping stations, gauging equipment, and storage facilities.
He added that tender bids for various sections of the project have been held and most of them have reached the phase of contract.
Dehqani said contracts for pumping stations had also been awarded to contractors, while infrastructure and site preparation operations are under way.
He said pipe-laying and storage construction had also started.
Sour Service Pipes
The delivery of 1 mb/d of light and heavy crude oil from oil fields in southwestern Iran to coasts in southeast, storage and exports via Jask terminal, guaranteeing crude oil exports stability, decentralization from export terminal and diversification of terminals, supplying feedstock to refineries in the Makran coasts, facilitating investment, implementing downstream projects and ensuring sustainable development in underprivileged provinces of southeast Iran are among objectives of the Gowreh-Jask crude oil pipeline project.
Dehqani touched on the advantage of engaging domestic manufacturers in this project, saying: “Due to sanctions, we hit snags in importing pipes. But fortunately, there is a possibility for manufacturing sour service pipes in the country and manufacturing this type of pipe has started since several months ago.”
He gave a positive assessment of cooperation on the part of other organizations in the Gowreh-Jask oil project, expressing hope that the project would become operational by March 2021.
West Karoun is comprised of two oil centers: Azadegan (North Azadegan, South Azadegan, North Yaran and South Yaran fields) and Yadavaran (Koushk and Hosseinieh).
These fields are estimated to hold over 67 billion barrels of oil in place. Iran was extracting nearly 50,000 b/d of oil from these fields until 2013, which has now reached 300,000 b/d.