TEHRAN – Iran’s Oil Minister Mohsen Paknejad announced a significant hydrocarbon discovery at the Pazan field, located in southern Fars Province, that could add an estimated 10 trillion cubic feet (Tcf) of natural gas to the country’s reserves. The find follows an eight-year dormancy in exploration at that field, he said.

The Pazan field lies about 21 kilometers from Jam in Bushehr Province. Based on exploratory drilling of a second well, tests confirmed substantial gas volumes. If a 70 percent recovery rate is applied, some seven Tcf of gas could eventually be extracted—equivalent to roughly 17 to 18 years of output from a single phase of the South Pars field. (On the basis of this estimate, the discovery holds considerable strategic weight.)

Paknejad said a development contract has already been awarded. He expects production to begin in about 40 months. He also noted that, for the first time, exploration operations have branched into horizontal drilling in the field, revealing that the reservoir also contains around 200 million barrels of crude oil. The preliminary data suggest that with further study, those oil volumes may be revised upward.

Strategic implications and sector context

Iran already ranks among the world’s top holders of natural gas reserves, and the Pazan discovery adds further scale to its portfolio.

Despite this, the country struggles with gas supply imbalances, especially during peak winter demand, and faces flaring and efficiency challenges.

The 40-month timeline places first gas production in late 2028 or early 2029—providing a medium-term boost to Iran’s capacity to address domestic shortages.

EF/MA