TEHRAN (NIOC) _ Two major oilfields in southwest Iran will begin producing 160,000 barrels per day (bpd) soon as the country is boosting output to pre-sanction levels.
North Azadegan and Yadavaran fields will become operational in February, head of Petroleum Engineering and Development Company (PEDEC), Abdolreza Haji-Hosseinnejad said on Saturday.
North Azadegan, operated by China’s CNPC, is expected to produce 75,000 bpd, with Yadavaran developed by Sinopec adding another 85,000 bpd.
Haji-Hosseinnejad said Sinopec and CNPC started developing the two fields but Iran completed the work due to sanctions on Tehran.
Azadegan is the world's third largest oilfield with in-place reserves of about 33.2 billion barrels and recoverable resources of about 6 billion barrels.
Minister of Petroleum Bijan Zangeneh said earlier this month that Iran may also award phase two of the North Azadegan to CNPC for development.
CNPC and PEDEC have already signed an initial agreement to produce 25,000 bpd from the field in the second phase, Iranian officials have said.
In 2014, Iran however cancelled a $2.5 billion contract to extract oil from the South Azadegan field and another deal to develop Phase 11 of the South Pars gas field after CNPC spent four years just to start the projects.
Yadavaran, which Iran shares with Iraq’s Sinbad, was awarded to Sinopec about nine years ago in a $2 billion deal to operate the first phase in July 2014 and raise recovery to 200,000 bpd in the second phase.
The field has reserves of 31 billion barrels of light and heavy crude oil.
Haji-Hosseinnejad said Iran also expects crude production at its North Yaran oilfield to reach 30,000 bpd by March 2017, the end of the next Iranian year.
South Azadegan will reach a production capacity of 60,000 bpd around the same time, he added.