Shell has signed an initial agreement with Iran for the development of three large oil and gas fields, namely the South Azadegan, Yadavaran oil fields and the Kish gas field.
South Azadegan was discovered in 2001 and is estimated to hold about 2 Gbl; the field, straddling the border with Iraq, is believed to be connected to the Majnoon oil field holding recoverable reserves of 13 Gbl and already operated by Shell (average production of 200,000 bbl/d). The Yadavaran field, also located near the border with Iraq, would have recoverable reserves of 3 Gbl. The two fields already have an early production of 40,000 bbl/d and 85,000 bbl/d, respectively. Once fully developed within the next three years, they could add more than 600,000 bbl/d to the domestic oil production.
The Kish gas field is located on the Kish island in the Persian Gulf; it could be the second largest gas field in Iran after South Pars, with 70 tcf (1,976 bcm) of reserves. Part of the gas production could be exported to Oman, where it would be liquefied for exports to international markets.
This is the first agreement signed by Shell in Iran since international sanctions were lifted. Iran has introduced new Iran Petroleum Contracts (IPC) in an attempt to attract foreign investors and boost its domestic productions after years of under investment.