The first phase of Iran’s $1.6bn Azar Oil Field Development project is set to be completed in mid-2018, according to Saeed Davari vice president of economics and business development at the main contractor on the project, Oil Industries Engineering and Construction (OIEC).

When the first phase is completed, 19 wells will have been drilled and online and production is expected to be 65,000 barrels a day (b/d).

There are currently 12 wells drilled and production stands at 35,000 b/d.

Phase two of the oil field development project will start in mid-2018 adding a further 15 wells, according to Davari. This is expected to be completed by 2020.

Azar field lies in Ilam province in western Iran, next to the Iraq border, and holds an estimated 400 million barrels of oil.

The client for the project to develop the field is the Iran Petroleum Engineering & Development Company, which says the field could produce 65,000 b/d for 25 years.

As well as drilling oil wells, the development plan requires OIEC to design and construct required surface facilities, separation units and transferring pipelines.