OIEC sign contracts with domestic construction to develop Azar oilfield

Iranian Oil Industries' Engineering and Construction Company signed USD 1.9 billion contract with a domestic consortium to develop the on shore Azar oilfield.

According to the agreement, the oil field will be developed in 6 years and it will produce 50,000 barrels to 65,000 barrels of light crude per day for a period of 25 years. The contract was inked with the local contractor after Russia’s Gazprom failed to implement the project.

Mr Ahmad Qhalebani MD of NIOC said that 'Unfortunately Russia's Gazprom failed to fulfill its commitment and ignored ultimatums of the National Iranian Oil Company. We decided to end our cooperation in the Azar oilfield and give the project to domestic contractors.'

In 2009, Iran signed preliminary agreement with Gazprom Neft, Gazprom's oil unit for a potential contract of USD 2 billion to develop the field. Azar is a cross border field shared with Iraq where it is called Badra. Reserves on both sides total 400 million barrels.