The partners developing Iran’s Yadavaran oil field in the southwestern Khouzestan province have awarded a series of construction and management contracts for early production facilities.

Eight engineering, procurement and construction (EPC) deals have now been awarded to local firms, almost 10 months after bids were first submitted in July 2010, according to a source close to the scheme.  

Jahan Pars was awarded three deals, including the construction of a central treatment and export plant and manifolds.

Tehran Jonoob will build an export pipeline, and Kalkhal Dasht will construct the wellhead facilities.

The companies would not reveal the value of the contracts. Local Namvaran was awarded the single project management consultancy (PMC) deal to oversee the EPC schemes

China’s Sinopec has a 51 per cent stake in the $2bn development, along with state-owned National Iranian Oil Company (NIOC), which owns 20 per cent, and India’s ONGC Videsh (OVL), the remaining 29 per cent. Sinopec was believed to be seeking financial compensation from NIOC due to the delays in commencing the project, which was first signed in 2004 (MEED 27:10:10). The long-awaited deal was only finalised in April 2008.

The first phase of development is expected to produce up to 85,000 barrels a day (b/d) by 2016, but the construction of early production facilities is already running more than 18 months behind schedule.

The field contains 18.3 billion barrels of crude oil, of which 3.2 billion barrels are considered recoverable. Meanwhile, its gas reserves stand at 12.5 trillion cubic feet, with 2.7 trillion recoverable.