The National Iranian Oil Company (NIOC) and MAPNA Oil and Gas Development Company signed separate contracts for developing Bande Karkheh oil field and providing oil processing services.
The deals were inked in a ceremony held at the Iranian Oil Ministry headquarters on Sunday in the presence of Oil Minister Javad Owji, MAPNA Group President Mohammad Owliya, and NIOC CEO Mohsen Khojasteh-Mehr.
With in place oil reserves of 980 million barrels, Bande Karkheh oil field is situated in the southwestern Khuzestan province, merely 20 kilometers from the provincial capital of Ahvaz.
The oil field is in proximity to other fields such as Ahvaz, Moshtaq, Abtimor, and Sousangerd.
Spanning a duration of 15 years, the contract stipulates the extraction of over 56.6 million barrels of oil from the field.
The endeavor will see a direct investment of $435 million, encompassing the drilling of 11 production wells, one appraisal well, and one wastewater disposal well, along with the establishment of wellhead equipment, pipelines, and facilities for processing and transporting crude oil.
The initiative is anticipated to generate approximately 2,500 jobs, both directly and indirectly, and is expected to yield oil revenues of $3.5 billion.
In addition, NIOC has pledged to allocate up to $4.3 million for community welfare in the region as part of its social responsibility.
The contract seeks to optimize oil output, promote employment in the region, streamline the country’s liquidity for strategic oil and gas projects, maximize profitability, leverage the capacity of Iranian exploration and production (E&P) companies, and enhance the social and economic infrastructure in Khuzestan Province.
Skid-Mounted Oil Processing
Moreover, NIOC has contracted MAPNA Oil and Gas Development Company for the procurement of crude oil processing services utilizing skid-mounted systems.
This contract, structured as a Build-Own-Operate (BOO) arrangement within a public-private partnership framework, involves the construction of a crude oil processing facility across the Ghalenar, Kabud, and Balaroud oil fields. This facility, with a daily processing capacity of 40,000 barrels, is set for a 10-year term with a capital investment of $100 million.