Iran's Joint Oilfield Production Increases

Iran expects to officially inaugurate Hengam Oil Field in the two sectors of exploitation plants of Qeshm Island and offshore installments in Persian Gulf with the presence of Iranian Minister of Petroleum Masoud Mir-Kazemi and Managing Director of National Iranian Oil Company (NIOC) Ahmad Ghalebani on 24 August 2010. Over 40 km of pipelines have been constructed in Qeshm Island, and about 100 km of submarine oil pipeline has been constructed in Persian Gulf. By producing 10,000 bpd of oil, Iran has outperformed the other party to Hengam joint field, which has not been able to increase its production from the field.

In 1975, Hengam Oil Field was discovered in Persian Gulf after drilling a well, and its in-place reservoir was estimated at over 700 million barrels of oil together with about 2 Tscf of gas following the drill of the second well 2006. While Iran was negotiating with Oman over joint development of the field, the Omani party started its production from the field in March 2008 with collaboration of a British firm. Meanwhile, Iran started the project of early production of the field, and managed to produce 4,000 bpd of oil from the field in March 2010, after completion of two new wells.

National Iranian Oil Company (NIOC) intends to increase the production from this field to 16,000 bpd by drilling three new wells in the first phase, and to 30,000 bpd by drilling four new wells over the second phase. So far, some US$400 million has been invested for completion of early production project of Hengam Oil Field, which has been provided by exporting part of light oil coming from the field. - Mehr, Naft News