National Iranian Oil Company (NIOC) has signed a US$463m agreement with Persia Oil and Gas Industry Development Co (Iran) to operate and develop the Yaran oil field, as the country is anticipating an end to sanctions.
The Yaran oil field is shared between Iran and Irak and is estimated to hold 550 mbl of crude oil in place. The agreement is expected to increase its production by around 40 mbl over a 10-year period. Persia Oil and Gas Industry Development Co will have to raise the funds to develop the field, including US$227m for direct investments into the project and US$236m in additional operating costs.
US sanctions against Iran have led international companies to withdraw from oil and gas projects - Total exited from the South Pars project in 2018 and CNPC in 2019 - and forced Iran to turn to domestic companies to develop oil and gas projects.