TEHRAN (Dispatches) - National Iranian Oil Coompany (NIOC) will sign three agreements with local firms on Monday to study the giant Azadegan oil field that it shares with Iraq, according to a statement on NIOC’s website.
If the preliminary agreements lead to finalized contracts, they will increase oil production capacity at the Azadegan field, the statement said without giving figures.
Persia Oil and Gas Industry Development Co. will study the northern section of the field, Petropars and Petroiran Development Co. will study the central section, and Pasargad Energy Development Co. and Dana Energy will both study the southern stretch, according to NIOC.
Azadegan, which is split into northern and southern sections, is the largest oil field that Iran shares with the neighboring country and has an estimated 32 billion barrels of oil in place.
Iran Ready to Increase Gas Exports to Iraq
Iran’s Petroleum Minister Bijan Zanganeh in a meeting with a visiting Iraqi delegation led by Finance Minister Ali Abdul-Amir Allawi, said his country is ready to increase gas exports to the Arab country.
“We are ready to increase the gas exports to Iraq,” Zangeneh said.
In a relevant event in early May, Zanganeh and Iraqi Electricity Minister Majid Hantoush met in Tehran to find a solution on the issue of paying Iran’s gas debt arrears, according to a report of Iran’s oil ministry.
“Some 27 billion cubic meters of gas has been exported to Iraq up to now ... but the payment is facing problems and we hope we could reach a solution on the issue,” the Iranian minister said.
Hantoush, for his part, said that Iraq is doing its best to settle the payments.
He added that settling debt arrears with Iran would allow Iraq to kick off construction for a new electricity station that has been awarded to Iranian contractors.