TEHRAN (PIN) – Iran’s Caretaker Oil Minister Gholamhossein Nozari said the increase of domestic crude oil production was the most valuable service.

He made the statement in his address to members of National Iranian Oil Company’s (NIOC) board of directors in Ahvaz, the capital of southwestern Khuzestan Province, Monday.
“At present, Iran is exporting 2.4 to 2.5 million barrels of crude per day,” said the official, adding if the figure reached three million barrels and each barrel was sold at $90 rate, its important role in the country’s economic sector and international transactions would be highlighted.
Iran produced 4.11 million barrels of oil per on average in the month of Shahrivar (Aug. 23 to Sept. 22), said the acting oil minister, adding the figure reached 4.135 million barrels during the past three days.
He predicted that the country’s output would be lifted by 100 thousand barrels by March 2008 as early production of Azadegan field would lift it by 25 thousand barrels, Darkhoein field by 50 thousand barrels, and Bahregansar platform by 25 thousand barrels.
National Iranian South Oil Company (NISOC) Managing Director Seifollah Jashnsaz said early production of huge Azadegan oilfield would kick off in January 2008.
“According to the prediction, the seven wells of the (Azadegan) field are expected to produce 25 thousand barrels per day (bpd), said Jashnsaz.
The official added the experts of NISOC and Petroiran Co. were outlining a plan on the second stage of production in an attempt to lift Azadegan’s output to 50 thousand barrels a day.
Azadegan is Iran’s biggest oilfield. In-place reserves have been put at 26 billion barrels.
Japan’s INPEX Holdings Inc. had been due to develop the field but talks collapsed in 2006, with the Japanese firm citing spiraling investment costs. INPEX retains a 10 percent stake.
India’s Essar Group, which has invested in a steel plant in the United States, said in March it was in talks with Iran about developing the field.
Nozari previously said Iran, flush with windfall oil earnings, would carry out energy projects using its own resources and Iranian firms if foreign parties backed out.
“Despite sanctions and pressures, work, effort, construction and implementing projects in the oil industry are strongly moving ahead,” he said yesterday.
Production capacity in Iran was climbing gradually, with sustainable capacity, based on the current trend, expected to hit 4.2 million bpd by the end of the Iranian year in March, the minister said, up from around 4 million bpd this summer.
Nozari said total capacity was running at about 4.3 million bpd but this level could not be sustained because of maintenance requirements.
Arvandan Oil and Gas Company Managing Director Salbali Karami said the second phase of development plan of Darkhoein oilfield would become operational in the “Government Week” in 2008 – from Aug. 30 to Sept. 5.
The official, who offered a report on the development of the field to members of National Iranian Oil Company’s (NIOC) board of directors and members of National Iranian South Oil Company’s (NISOC) directorate, said the second phase would produce 160 thousand barrels of oil per day.
He added the field’s current daily output stood at 50 thousand barrels and the figure would soar to 100 thousand barrels next Jan.
“The aim behind development of second phase is to increase the daily production from 50 to 160 thousand barrels,” said Karami, adding the third phase would lift the daily output by 100 thousand barrels.
The development plan of Darkhoein oilfield was underway in collaboration with the Italian company Eni, he said.
The operations comprise the drilling of 15 development wells, three injection wells, and one to discharge extra water.
In the meantime, 210 million cubic feet of gas is injected per day, an exploitation unit is built to lift nominal capacity to 165 thousand barrels of oil a day, and all pipeline and wellhead equipment become operational.
Darkhoein oilfield is located at 30 km north of Khorramshahr and 100km south of Ahvaz, southern Iran.
Italian giant Eni and Iranian firm Naftiran Intertrade Co. (NICO) have signed buyback contracts to develop the first and second phases of the field.
The first phase of the project for development of Darkhoein oilfield was supposed to come on stream 34 months after conclusion of related contract, that was in May this year but it became operational one month later.
The oilfield is expected to yield 1.29 billion barrels of oil in a 30-year period. The field is predicted to earn the country over 360 million dollars a year after completion of the first phase and 1.16 billion dollars a year after completion of its second phase.
The two-phased development project for production of 160,000 bpd is expected to cost 920 billion dollars in all.
Iran is estimated to pay off the cost in six years, 60 percent of which to be paid through sale of oil. Three wells have already been drilled in the area in 1964, 1977, and 1992. The field has a reservoir of about 3.6 billion barrels of in-place oil.