Irans Oil Ministry awarded Global Petrotech Company a contract to drill two appraisal wells in the South Pars oil layer.
The contract is valued at around US$182mn and was signed between Pars Oil and Gas Company and Global Petrotech Company in the presence of the Oil Minister Rostam Qasemi.
Development plan
According to the contract, the Iranian company must drill two appraisal wells in 40 months to assess the South Pars field's oil exploitation potential.
The wells will also provide information on the amount of in-place oil reserves of the field and pave the way for the formulation of a major development plan for the offshore field.
Six km of horizontal drilling
A major feature of the project is six km of horizontal drilling in the South Pars field's oil layer aimed at gathering information and upgrading reservoir models of the joint oil field.
The development of the Iranian side of the oil layer had been constantly postponed. The new contract aims to produce a daily total of 35,000 barrels of crude oil from Section A of the field in the first phase of its development.
South Pars gas and oil field covers an area of 9,700 sqm, 3,700 sqm of which are in Iranian territorial waters and the remaining 6,000 sqm are in Qatari territorial waters.
