NIOC prepares for field optimisation programme

31 October 2003
National Iranian Oil Company (NIOC)is preparing a major field optimisation programme in the south, starting at Aghajari. The project will involve the renovation and upgrade of surface facilities to produce an additional 300,000 barrels a day (b/d) of oil, 270 million cubic feet a day (cf/d) of gas, 32,000 b/d of sweet natural gas liquids (NGL) and 210 million cf/d of sweet lean gas (see Tenders).

National Iranian South Oil Fields Company (Nisoc), the NIOC subsidiary responsible for developing the area, has invited local and international contractors to submit prequalification documents by 6 November. The project will be carried out on a lump-sum turnkey (LSTK) basis and will be open to local companies bidding alone or to local/foreign joint ventures with majority local ownership.

The scope of works includes detailed engineering, procurement, supply, construction and commissioning of the Aghajari facilities, which will include: 11 clusters with booster pumps and compressors; two oil production units; two gas compressor stations; 520 kilometres of gathering and transmission pipeline; and 132-kV overhead transmission lines and substations. NIOC will finance the expansion through buyer's credit.

Iran recently announced it had production capacity of 4.2 million b/d, allaying fears of a decrease in capacity. However, the Islamic republic is carrying out major field upgrades in order to offset natural field depletion and to strengthen capacity as Iraqi production levels recover.

The country has said it will fight against OPEC production quota parity with Iraq.

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