Aban oil field is located 38 kilometers southwest of the city of Dehloran, and Paydar-e Gharb field is situated 150 kilometers northwest of the oil-rich city of Ahvaz and 35 kilometers from Cheshmeh-Khosh processing facility in Ilam Province.
Both fields are jointly owned by Iran and Iraq. Their current production together stands at 36,000 b/d. A memorandum of understanding (MOU) was signed with Zarubezhneft on July 12, 2016 for the Russian company to study the Aban and Paydar-e Gharb fields under the newly developed model of oil contracts (IPC) with a view to accelerating oil and gas fields Iran shares with neighboring countries.
Now, for the purpose of improving recovery and increase production from these two fields, the current agreement is signed between the National Iranian Oil Company (NIOC) on one side and Zarubezhneft and its Iranian partner Dana Energy on the other for a period of ten years.
This agreement is meant for the two fields to produce up to 48,000 b/d with an accumulated output of 67 million barrels over ten years. The agreement is subject to renewal upon request by parties hereto.
The Russian company has an 80% share of the deal with the rest going to its Iranian partner.
The main jobs envisaged to be carried out under this agreement include conducting engineering studies, workover of wells and their equipment with downhole pumps, reconstruction, repair and renovation of existing installations, installation of separator, installation of multiphase flowmeter, and transforming a production well into a waste injection well in Phase 1, and purchase and installation of oil, gas and water transmission unit, drilling eight appraisal/production wells, purchase and installation of downhole pumps, installation and operation of separator, conducting 3D seismic studies, and drilling relief wells in Phase 2.
The CAPEX calculated for the development of Aban and Paydar-e Gharb fields is estimated at $674 million (including direct capital, and downhole pumps repair and replacement costs). Indirect costs are estimated at $68 million.
Once operational, this project will create technical jobs on a large scale in Ilam Province, particularly workshops to repair and rebuild ESP pumps for the first time in that area. Furthermore, Zarubezhneft is expected to apply its enhanced oil recovery (EOR) technology in these fields so that the Iranian parties would learn about the technology and its application.