NIOC and Mapna have signed a contract to develop and operate Parsi and Paranj oilfields in Khuzestan

State-owned oil and natural gas producer National Iranian Oil Company (NIOC) and energy firm Mapna have signed a contract to develop and operate Parsi and Paranj oilfields in Iran’s Khuzestan Province.

The Parsi oil field is located in ​​South Dezful, 125km from the city of Ahvaz, while Paranj Square is located between Karanj and Parsi fields.

The Paranj oilfield is approximately 75km from Behbahan and 40km from Ramhormoz.

Under the ten-year contract, the two parties have agreed on the comprehensive development of both oilfields within the interprocess communication (IPC) framework.

A maximum production of 85,000 barrels of oil equivalent per day (boepd) and an additional cumulative production of over 121 million barrels is expected to be achieved from both fields, as part of the deal.

An estimated direct capital cost of $876.6m and an indirect cost of $235.3m will be involved in order to achieve the required capacity, with cost of exploitation estimated at an additional $269m.

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The contract includes upgrading and constructing surface installations, as well as drilling new wells and repairing existing wells.

Gas lift operation, drilling and EOR studies, human resources training, research and development (R&D) and technology transfer are also included under the contract.

According to NIOC, the implementation of this plan will create employment opportunities in Khuzestan Province and will contribute to increasing Iran’s crude oil production capacity.

In January 2017, NIOC was reportedly negotiating with the Philippines’ National Oil Company (PNOC) to export four million barrels of crude oil.