Iran begins $ 528 mln oilfields development project near Iraq border

Iran kicked off a major project to develop oilfields at one its old reservoirs shared with neighboring Iraq.

News ID: 5868

Date: 26 January 2025 - 08:28

TABNAK, Jan 26: At a ceremony, the CEO of the National Iranian Oil Company (NIOC) and local officials ordered the start of development projects at three oilfields of Sumar and Saman in Kermanshah province and at Delavaran oilfield in the province of Ilam.

The three oilfields are part of the NIOC’s Naftshahr Operation Zone, a reservoir discovered in 1931 that is connected to oilfields in neighboring Iraq. It is located some 72 kilometers from the border city of Qasr-e Shirin and 230 kilometers to the southwest of the provincial capital of Kermanshah.

The projects are worth $528 million and will increase production from the three fields by five times to 20,000 barrels per day (bpd) in the next two years.

NIOC’s CEO Hamid Bovard said that the projects will increase the supply of crude oil to Kermanshah Refinery while they will create many jobs for the local youth.

Bovard said that private companies had also contributed to the projects, adding that the investors would be able to earn income from the fields within the next 20 months.

Iran has relied on domestic companies to develop its massive petroleum industry in recent years as the country has been barred from accessing foreign investment and technology because of US sanctions.

Recent data from international organizations and companies show that Iran’s oil production and exports have returned to levels seen before Washington imposed its sanctions on the country in 2018.