Sepehr and Jufair oilfields came on stream on Friday in an official ceremony in Khuzestan Province, southwestern Iran.
The ceremony was attended by Iran’s President Ebrahim Raeisi, Oil Minister, Javad Owji, Managing Director of National Iranian Oil Company (NIOC), Mohsen Khojastehmehr, CEO of Bank Pasargad, Majid Ghasemi, and Managing Director of Pasargad Energy Development Company, Alireza Sadeghabadi.
“Today, we witnessed such important projects put into operations by competent and noble engineers, consultants and workers which I sincerely appreciate,” said President Raeisi, who attended the ceremony via videoconference.
What is being made by Iranian engineers to raise production and gather flare gas is counted an honor for the country, he added.
Despite the hard climate conditions in Khuzestan Province as well as unprecedented sanctions against Iran, the people who are employed in the industry have been able to impose their will, Raesi said, adding, “Although the enemy was determined to stop improvement in the country’s production and employment and prevent implementation of the Supreme Leader’s orders, Iranian engineers were able to impose their will on the enemy.”
Meanwhile, speaking at the ceremony, Iran’s Oil Minister, Javad Owji, said, “There are nine oilfields in West Karoun region, six of which are shared with Iraq. All these fields are being developed and currently produce 450,000 barrels of oil per day in West Karoun.”
The development of Sepehr and Jufair oilfields progressed 15 percent when the incumbent government took office, he noted, saying, “International companies were involved in development of Sepehr and Jufair oilfields many years ago, but they quit the project after a while. Today, the first phase of the project was inaugurated which has a daily production capacity of 50,000 barrels of light oil per day which is suitable for exports.”
The project was developed by National Iranian Oil Company and Pasargad Energy Development Company with 414 million dollars of investment made by Bank Pasargad and became operational in a short period of time, Owji said.
Today, Iran’s Oil Ministry and Pasargad Energy Development Company held talks and agreed that the company will carry out the development of North Pars Field and the Liquefied Natural Gas (LNG) projects which are to be funded by Bank Pasargad.
Furthermore, talking at the ceremony, the CEO of Bank Pasargad, Majid Ghasemi, welcomed President Raeisi and his delegation to the land of sacrifice and martyrdom, saying, “To honor the martyrs of Iran and this region, we are all committed to undertake discovery and production plans of the oilfields situated in Khuzestan Province, which is considered Iran’s economic center due to its rich oil and gas reserves.”
You put special emphasis on resistance economy on the day you were in Parliament to obtain a vote of confidence for your cabinet, Ghasemi told President Raeisi, adding, “Given the role I have played in making plans and policies for resistance economy, I would say that the development plan of Sepehr and Jufair oilfields is a clear indication of resistance economy.”
Every single policy of resistance economy including adding economic value, currency returns, attracting participation by the society, which is the first clause of resistance economy’s policies, and having knowledge-based and complex fields have been carried out by Iranian engineers while it was thought it would not work, he said.
Development of oil and gas projects provides the ground for job creation and adding high value, Ghasemi said, noting, “I would like to take this opportunity to draw the attention of my colleagues engaged in the country’s banking system to their abilities to play a serious role in Iran’s economic development.”
Pasargad Energy Development Company has constructed an art school in Hoveyzeh, Khuzestan Province, in order to fulfill its social responsibility, he noted.
The development contract of Sepehr and Jufair oilfields was signed under the newly-developed model of oil contracts, dubbed as Iran Petroleum Contract (IPC), in March 2018. It is the first investment and development contract carried out by Iranian companies and private sector, particularly Pasargad Energy Development Company, and operated by Pasargad Exploration and Production Company.
Total value of the development contract of Sepehr and Jufair oilfields is 2.8 billion dollars, of which 330 million dollars have been already spent. Oil production from the field will increase to 110,000 barrels per day from the current 50,000 barrels once the development project finalizes.
The 12 wells, which have been already drilled, reached the oil reservoir at a depth of 4600 meters in Fahlian layer with over 10,000 psi pressure.