MAPNA Group and National Iranian Oil Company (NIOC) signed a contract for development of Parsi and Paranj oil fields on Saturday, February 8, 2020.
The scope of the contract includes increased oil recovery (IOR), enhanced oil recovery (EOR), and operation of the fields.
The contract was signed between MAPNA President Abbas Aliabadi and head of National Iranian South Oil Company Ahmad Mohammadi on behalf of NIOC.
The ceremony was attended by Petroleum Minister Bijan Namdar Zanganeh.
With a value of 1.38 billion dollars, the ten-year contract aims to increase the daily production rate of Parsi and Paranj to 85 thousand barrels from the current 52 thousand barrels per day.
The new production rate is expected to generate an extra 1.64 million dollar revenue, with an estimated price of 50 USD per each oil barrel.
MAPNA Group will carry out a diverse range of subsurface operations include drilling of 29 new wells, repair of 8 existing wells, artificial gas lift, installation of submersible pumps for 45 wells, fracturing and installation of tubing. Surface operations include optimization and capacity increase for current utilities, construction of gas gathering and compression stations, construction of desalination units, installation of oil & gas pipelines and gas injection.
The draft agreement was signed in August 2018.
Parsi oil field is located 125 kilometers north of the city of Ahwaz, center of the oil-rich Khuzestan Province in southwestern Iran.
Oil extraction in the field started in 1966, two years after the discovery of the oil field.
The initial production rate was 7.4 thousand barrels per day. Eighty-nine wells have been drilled across the field so far.
The second field, Paranj, is located between Parsi and Karanj oil fields, 40 kilometers northwest of the city of Behbahan, Khuzestan.
Operations in the field began in 2007. To date, 11 fields have been drilled across the field.
Speaking during the signing ceremony, Petroleum Minister Bijan Zanganeh stated that increased recovery is expected to generate a total of 6 billion dollars of gross revenues for the country.
Pointing to structure of the new oil contracts developed by the ministry, the so-called Iran Petroleum Contracts (IPCs), Zanganeh emphasized the importance of possession of advanced technology and financial resources in IPCs.
“MAPNA has chosen the right project,” he said. “Pressurizing is a central task in development of Parsi and Paranj, which requires possession of rotating machines.”
“MAPNA has been prepared for advanced drilling, and operation of turbocompressors and rotating machines,” reassured MAPNA President Abbas Aliabadi.
“We have already kicked off operation in Danan Oil Field,” he reminded, pointing to another development contract signed in January 2019.
Also speaking at the ceremony was head of the National Iranian South Oil Company Ahmad Mohammadi.
Mohammadi pointed to execution of reservoir studies, increased oil recovery, training of human resources, technology transfer, and research & devleopment as other advantages of the contract.
Since mid-2000s, MAPNA GROUP has engaged in a wide range of oil & gas projects including field development, onshore and offshore drilling services, and construction of downstream processing units, auxiliary facilities, utility, and storage tanks.
MAPNA Oil & Gas was acknowledged by the Ministry of Petroleum as a qualified exploration and production (E&P) company in 2016.
