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Iran signs US$13bn of contracts to develop 6 oil fields and boost production

The National Iranian Oil Company (NIOC) has signed a series of contracts worth US$13bn for the development of six oilfields in the country, which are expected to boost Iran’s crude oil output by 350 kb/d. The contracts pertain to the development of Azadegan, Azar, Masjed Soleyman, Soumar, Saman and Delavaran oil fields located in western and southwestern Iran.

A 20-year contract valued at US$11.5bn was signed for the integrated development of the Azadegan field, Iran's largest joint oil field (shared with Iraq). It was signed with Dasht Azadegan Arvand Oil and Gas Development Company. This contract alone aims to increase the field's oil production from 205 kb/d to 550 kb/d. Other contracts included a US$1.03bn agreement with Sarvak Azar Engineering and Development Company for the development of the Azar field, a US$260m contract with Sina Energy Gostar Company for the Masjed Soleyman field, and a US$245m agreement with Well Services of Iran and Petro Iranian Arvand for the development of the Soumar, Saman and Delavaran oil fields. 

Iran holds the fourth largest oil reserves in the world (after Venezuela, Saudi Arabia, and Canada), amounting to 21.5 Gt at the end of 2022, representing 13.5% of the world’s total proved crude oil reserves and 17% of OPEC reserves. The country produced more than 160 Mt (3,544 kb/d) of crude oil in 2022.