Iran says it has received proposals from the global energy giant Royal Dutch Shell for the development of two major oil fields.
According to reporters, Shell had on Wednesday submitted the results of its feasibility studies over the fields – South Azadegan and Yadavaran - to the National Iranian Oil Company (NIOC).
Both are located in Iran’s oil-rich southwestern province of Khouzestan. Shell had signed a basic agreement with the NIOC in December 2016 to study the investment potentials in South Azadegan and Yadavaran as well as Kish gas field.
South Azadegan was discovered in 2001 and was described at the time as the world’s biggest oil find in decades. It has recoverable reserves of about 2 billion barrels. Located in a former theater of Iran-Iraq war (1980-88), South Azadegan is believed to be connected with Iraq’s supergiant Majnoon oil field which has recoverable reserves of 13 billion barrels which was also being developed by Shell and is now producing 200,000 barrels per day (bpd) of oil for Iraq.
Yadavaran – which was once described as the crown jewel of Iran’s oil projects – has recoverable reserves of 3 billion barrels.
South Azadegan and Yadavaran are located in Iran’s southwestern oil-rich province of Khouzestan and already have an early production of 40,000 bpd and 85,000 bpd, respectively. Both are expected to boost Iran’s oil production capacity by above 600,000 bpd significantly once fully developed within the next three years.
Kish gas field is located in the Persian Gulf island of Kish and is considered as the country’s second biggest gas field after South Pars.
With a reservoir of 70 trillion cubic feet, Iran plans to use Kish output to feed a pipeline to Oman where a section of the supplies will be turned into liquefied natural gas (LNG) for exports to international markets.