Iran’s National Iranian Oil Company has officially endorsed and notified the IPC contract for the Integrated Development of Bande Karkheh Oil Field following the completion of all legal and administrative procedures.
The notification was issued on February 17, 2026, after the contract passed the required government approvals. The implementation phase is seen as a significant step toward sustainable development and increased oil production in the West Karun region.
The project is strategic. It aims to boost production capacity, optimize hydrocarbon resource use, and improve operational efficiency across the country’s upstream oil sector.
Under the agreement, the contract period is 15 years. The plan will be executed in the Hamidiyeh area of Khuzestan Province with a direct investment of about $432 million.
The development will help expand production, streamline operations, and support Iran’s broader developmental programs in oil.
Earlier in June 2024, the contract was initially signed between the National Iranian Oil Company, MAPNA Group’s oil and gas division, and MAPNA Oil & Gas Development Company (OGDC). The signing came after extensive technical, contractual, and financial negotiations. The move matched national policies to expand production and maximize recovery from oil fields.
The Bande Karkheh Oil Field lies about 20 kilometers from Ahvaz city in Khuzestan Province. It adjoins the Ahvaz, Moshtaq, Ab-Timur, and Susangerd fields.
The field sits in the Dezful embayment and the exploratory Mehr block. Its anticline structure spans roughly 60 by 5 kilometers. To date, three exploratory wells have been drilled. Liquid hydrocarbons were confirmed in the southern anticline at the Ilam formation.
Officials note the project will strengthen domestic capacity in oil exploration and production. It also underscores an ongoing development-focused approach and active private sector participation in Iran’s strategic upstream oil projects.