BAKU, Azerbaijan, July 6. Iran has launched the
development process for the second phase of the Azar oil field, a
joint oil field with Iraq (known as Badra in Iraq).


This was announced by Keyvan Yarehmadi, an official at Iran’s
Petroleum Engineering and Development Company.


"By the end of last year, the development of the second phase of
the Azar oil field was approved and announced to the contractor. A
joint management committee meeting on the field’s second-phase
development was held, and a decision was made to allocate the
required budget," he said.


Yarehmadi noted that 13 work packages have been prepared as part
of the second phase, including a tender for the installation of
drilling rigs and the start of operations for drilling the first
well.


The company official added that part of the equipment required
for the drilling rigs has already been delivered, part has been
manufactured, and part has been imported and is currently being
cleared through customs. He said that the war and maritime blockade
in the country have caused some delays in importing and delivering
the necessary equipment.


According to Yarehmadi, technical meetings have been held on the
installation of two downhole pumps, which are expected to be
manufactured domestically and delivered to the Petroleum
Engineering and Development Company by the end of the year.







"The installation of two downhole pumps, as well as a mobile
operating system (MOS), is planned. Once these facilities are
installed, production from the Azar oil field is expected to
increase from 18,500 barrels per day to 22,000 barrels per day by
the end of the year," he said.


The Azar oil field is one of the joint oil fields between Iran
and Iraq. One-third of the field’s reserves are located in Iranian
territory, while the remaining reserves lie in Iraq. The field’s
oil reserves are estimated at 2.5 billion barrels, with recoverable
reserves estimated at 400 million barrels.


According to Trend’s analysis, Iran’s Azar oil field is considered
one of the most challenging fields to develop due to its geological
characteristics. Iran views the development of the field as an
important part of its strategy to jointly develop oil and gas
fields with neighbouring countries.


However, sanctions imposed on Iran, limited financing, and a
lack of interest from foreign investors in the country’s oil and
gas sector due to sanctions have slowed progress on planned
hydrocarbon production projects. In this context, Iran is also
focusing on developing its oil and gas sector through projects
requiring smaller-scale investments.