TEHRAN – Managing director of Qeshm Oil Industries and Energy Development Company (OEID) noted that development of Paydar, Paydar Gharb, Serkan, Dehloran, Sa’adatabad, Maleh Kuh, Khesht, Sarvestan, and Cheshmeh Khosh oil fields will increase the country’s crude oil production by 200,000 barrels per day (bpd) by 2008.

Mohammad Ali Shafiei told Petroenergy Information Network that the contract signed between Oil Industries and Energy Development Company of Qeshm and National Iranian Central Oil Company is worth one billion dollars and noted that the credit has been allocated to developing 16 oil fields and development of 9 oil fields has been assessed as being economically feasible.

He added that Iranian fields were previously developed by foreign companies and this is the first time that development of oil fields (including field study, seismography, interpretation of data, drilling operations, pipeline and wellhead installations) is totally being carried out by domestic companies.

The official noted that desalting plant of Naft Shahr with a capacity of 25,000 barrels per day will be made operational during the current Iranian calendar year (started March 21, 2006).

Managing director of Qeshm Oil Industries and Energy Development Company further noted that Khesht oil field will be developed at a cost of 100 million dollars during the current year, adding, “Development of the field will include a production plant, desalting plant, as well as gas collection and injection.”

He said that operations will start in early September.

Shafiei noted that more than 100 million dollars has been allocated to building desalting and production plants at Sarvestan and Sa’adatabad oil fields.