Shafaq News/ On Sunday, Iran'sEconomic Council approved new oil contracts worth over $1 billion in investmentto develop the second phase of the Azar oil field, jointly owned with Iraq andlocated in western Iran's Ilam province.
Keyvan Yarahmadi, Executive Directorof Azar Oil Field Development Program, told the Iranian news agency IRNA,"The contract will take effect before the end of this year (March), oncethe contractor meets the basic contract conditions and the employer completesthe necessary procedures."
Yarahmadi also noted the"upcoming launch of Dehloran gas and NGL-3100 plant," highlightingthat "the associated gas compression and sweetening facilities at the Azarfield, completed earlier, have been inaugurated and are ready to supply gas tothe plant."
"Accordingly, all activitiesfor the first phase of the field's development will be outlined, and the keymilestone—marking the project's turning point—will be completed,” he noted. “Thefirst phase of the plant’s development will achieve its goals, meeting allcontractual objectives and ensuring Iran’s share of over 70%, resulting in theproduction of 83 million barrels of oil and nearly $6 billion in revenue."
About the Field
The Azar field, located 25 km fromMehran near the Iran-Iraq border, is one of Iran's most complex fields. Oilextraction from this field began 8 years ago. It holds 2.5 billion barrels ofcrude oil, with an estimated recoverable quantity of 400 million barrels.
The Iranian government previouslyannounced that the Azar oil field, shared with Iraq's Wasit province, produces65,000 barrels per day. The investment project, costing €1.4 million ($1,443,400),includes 20 drilled oil wells.
Earlier, Former Iraqi Oil MinisterIhsan Abdul-Jabbar told Shafaq News that Iraq does not face significant lossesin its shared fields with neighboring countries, adding that “the ministry iscontinuing to develop these fields and boost crude production.”
Notably, Iraq has 24 shared oilfields with Iran, Kuwait, and Syria, 15 of which are producing. Key fieldsinclude Safwan, Rumaila, and Zubair with Kuwait, and Majnoon, Abu Gharb, Buzurgan,Fakka, and Naft Khana with Iran.