Iranian Central Oil Fields Company (ICOFC), a subsidiary of National Iranian Oil Company (NIOC), fulfilled entirely its obligations in maximum efficient recovery and maximum oil and gas production last calendar year to 21 March 2021. ICOFC had prioritized oil and gas fields shared with neighbors and supplying domestic needs in the household and industrial sectors. ICOFC"s activities indicate the company"s full readiness to increase output to pre-sanctions levels.

The following is a review of the most important achievements of ICOFC and introduces its development plans for the current calendar year.

Oil Fields Development

Khesht oil field development plan for enhancing oil output for delivery to Genaveh for exports was among the ICOFC"s plans last calendar year. To that effect, building a gas compressor station in Cheshmeh Khosh for gathering associated gas released from the West Paydar oil field (Asmari) for injection into the Cheshmeh Khosh field for enhanced recovery or delivery to the NGL 3100 plant to produce high-value condensate, building gas compressor station to gather associated gas in West Paydar (Bangestan), East Paydar, Dalpari and Aban to be injected into Cheshmeh Khosh with a view to enhancing recovery or delivering to the NGL 3100 plant for high-value condensate recovery are among other development projects currently under way to enhance production from the said oil fields.

From Storage to Compressor Station

Along with enhanced oil recovery projects, ICOFC carried out some gas projects. All these activities show ICOFC"s firm determination to raise gas output sustainably. Gas storage in Shourijeh D, development of the second phase of the Dalan refinery (Farashband) with a view to developing the facility to process the gas supplied by the Aghar field, second phase development of the Tang Bijar gas field, building a gas compressor station in Kangan, construction of compressor station at the Naar field for gathering gas, and establishment of the Dehloran gas compressor station for maximum recovery from this field and preventing the flaring of 82 mcf/d of associated gas are among these projects. Currently, development of 13 new gas fields and construction of two gas compressor stations with an investment of about $3.5 billion top the company"s agenda.

3 New Wells Drilled

In a bid to sustain and enhance production, 16,468 meters of oil and gas well drilling was carried out last calendar year. Implemented using 6 rigs, the drillings included three new wells and one workover oil well. Furthermore, eight workover gas wells are among other activities in the drilling sector.

Sustainable Gas Supply

By the end of last calendar year ( 20March 2021), in order to guarantee winter fuel supply in cold seasons in six northern and northeastern provinces and feed the national gas trunkline, 1,856 mcm of gas was injected and stored in the Shourijeh storage site and 1,014 mcm in the Sarajeh storage site. Furthermore, gas supply by these two storage sites included 930 mcm from Sarajeh and 2,005 mcm from Shourijeh D.

Seismic Testing

The largest and the most sophisticated 2D and 3D seismic survey operations were conducted in the petroleum industry in the final months of last calendar year. Currently, 3D seismic testing is under way in the Tang Bijar and Delavaran fields, covering 560 square kilometers. Moreover, 2D seismic testing in the Baba Qir and Bankol fields in Ilam Province has been conducted on an area of over 800 kilometers. Seismic testing has created more than 550 jobs. The seismic testing operations have cost IRR 1,059 billion plus €39 million.

EPCF/EPDF Field Development

Three agreements struck between ICOFC and three Iranian companies, worth IRR 16,000 billion for adding 17,000 b/d to oil output in ICOFC-run areas has become operational. The agreements are aimed at enhancing oil production in the provinces of Ilam, Kermanshah and Fars, which would create jobs for 2,630 persons, enhance oil production and make business prosperous for Iranian manufacturers and suppliers. These projects will be implemented over a two-year period. They involve the Danan, Saadatabad and Naftshahr fields. Geophysical activities are being monitored in coincidence with drilling operation.

Dehloran Gas Compressor

In light of the imminent launch of the NGL 3100 plant in the Cheshmeh Khosh area, feeding associated gas from the Dehloran and Danan fields into the NGL 3100 plant would become possible. Then, after going through processing, gas liquids would be separated to be partly injected into oil wells for enhanced recovery and into the national gas network for sweetening. For this reason and for the purposes of gathering associated gas from Dehloran and Danan fields, construction of the Dehloran gas compressor station was envisaged. The contractor is currently making arrangements for the project, carrying out engineering and development activities and making preparations for commodity purchase.

Gas Compressors in Fars Province

Homa, Varavi and Tabnak fields in Fars Province sustainably feed the Parsian 1 and Parsian 2 refineries - both key gas refineries in terms of the refining capacity and gas supply. A review of history of pressure fall-off in Homa and Varavi fields signals significant pressure fall-off over coming five years.

Negotiations started with an Iranian company as investor in ethane recovery (Parsian Sepehr refinery) in the downstream sectors of the Parsian 1 and 2 refineries. Agreement was signed to that effect, and the contractor is currently preparing the location of the project and making arrangements for engineering and development.

Gas Compressor Station Rearrangement

The Naar field gas production capacity stands at about 18 mcm/d with an about 3,000 b/d gas condensate production capacity. The gas produced by this field is dispatched to the Fajr Jam refinery through 24 and 30-inch-diameter pipes, while gas condensate would be delivered in 6-inch pipes.

Production hike is envisaged from Naar field. That would be realized through rearranging gas compressors. Studies are under way to see if Iranian companies would be able to handle this project.

Kangan Gas Compressor

According to surface and subsurface studies, the only effective factor in enhanced gas recovery from Kangan field is to establish gas compressor stations, which would enhance the recovery rate to 82%. Meanwhile, production would go on with a flow rate of 30 mcm/d in warm months and 40 mcm/d in cold months. That would go on for 10 years. For this purpose, using 25MW turbocompressors was envisaged for the Kangan gas compressor station.

Gas Gathering Auctioned Off

In a bid to prevent flaring associated gas, and to reduce harmful environmental impacts and generate value-added from these resources and also create investment and business opportunities, ICOFC has undertaken necessary measures to sell flare gas from Sarvestan and Saadatabad, Naftshahr/ Sumar and Cheshmeh Khosh fields through holding auction bids. Arrangements are also under way for the sales of gas from Khesht field. The gas envisaged to be sold from these fields roughly totals 93 mcf/d.

Research Projects

ICOFC lays emphasis on the necessity of optimal use of existing potential at universities and cooperation with scientific and academic centers in the country, particularly knowledge-based companies, to push ahead with research objectives and implement two field-oriented researches including Tang Bijar and Baba Qir and Saman and Bankol as its satellite fields and Khesht field. Meanwhile, carrying out research and technological studies to develop technical knowhow for the optimization of production processes and enhancement of the recovery rate in the Khesht field are under way.

So far, ICOFC has endorsed 77 research projects, 72 of which are finished and 5 research projects are under way in partnership with universities and research centers. Last calendar year, the company also put out to tender comprehensive studies on the Tabnak, Shanol, Varavi, Aghar and Dalan gas fields; as well as the Naftshahr, Sarvestan and Saadatabad oil fields within the framework of five packages with a view to determining reservoir specifications, constructing surface and subsurface models, forecasting the performance of the field, making economic calculations and presenting a plan for development and enhancement of recovery.

Crash Plan for Development

In execution of sustainable feedstock supply to gas refineries and in a bid to safeguard gas production and consumption balance, a crash plan has been approved by the NIOC Board of Directors for the development of ICOFC-run fields in the provinces of Fars, Bushehr, Hormuzgan, Kermanshah and Khorasan Razavi.

The projects include development and preservation of gas production from the Dey, Sefid Zakhour, Halegan, Sefid Baghoun, Khar Tang, Gerdan, Madar, Eram, Pazan, Toos, Baba Qir, Bistoun fields, the second phase of the Aghar field and development of the Farashband gas refinery and construction of gas compressor station for the Sarkhoun and Shanol fields. Throughout this project, 121 wells would be drilled or worked over, 2D and 3D seismic testing would be carried out, line pipes and processing installations would be installed. That would allow for the maximum recovery of 142 mcm/d of gas and 100,000 b/d of condensate.

Courtesy of Iran Petroleum