WPB: With substantial investments and the adoption of modern technologies, the development of the Azadegan, Yadavaran, Sepehr, and Jofeir oil fields in the West Karun region has been prioritized. According to the latest figures, the South Azadegan oil field’s production and processing unit, with a capacity exceeding 320,000 barrels per day, is recognized as the largest oil processing facility in the country. Under large-scale projects, the goal is to increase production to 550,000 barrels per day over an eight-year period.
To achieve the strategic objective of increasing oil production and strengthening Iran’s position in the global market, the government and the Ministry of Petroleum are taking significant steps by implementing development plans in West Karun’s joint oil fields. According to the latest figures announced by the CEO of the National Iranian Oil Company’s Petroleum Engineering and Development Company (PEDEC), key projects in the Azadegan, Yadavaran, Sepehr, and Jofeir fields are being executed using advanced technologies and extensive participation from domestic banks and companies.
Azadegan Field
Located in the Abadan Plain region, approximately 80 kilometers west and southwest of Ahvaz along the Iran-Iraq border, the Azadegan oil field is the largest joint oil field in the country. Estimates suggest that the field contains around 32 billion barrels of oil reserves, with current production at approximately 190,000 barrels per day. The South Azadegan processing unit, with a capacity of 320,000 barrels per day, is the largest oil processing facility in the country. This unit, which underwent a 24-hour operational test on March 19 (the last day of the Persian year), was launched on a trial basis. However, after project handover, it faced supply shortages. Petropars, the main contractor, has since purchased and fully paid for some of the required equipment.
In this regard, the massive Integrated Azadegan Project, one of the country’s key initiatives, has been planned with a $10 billion investment for the second development phase of the North and South Azadegan fields. The project aims to achieve sustainable production of 550,000 barrels per day over an eight-year period. Azadegan Alvand Company, which was established with the participation of several banks, has reported that its organizational structure has been set up, and environmental and engineering studies have begun. The project’s execution is expected to commence in early April 2025.
Yadavaran Field
The Yadavaran oil field, located about 70 kilometers southwest of Ahvaz and north of Khorramshahr, is another joint oil field between Iran and Iraq. Over the past years, its development has experienced pauses and resumptions. In the first phase, the field’s production capacity was planned to reach 85,000 barrels per day, but with an additional increase of 15,000 barrels per day, it has reached approximately 100,000 barrels per day.
So far, about 65 million barrels of crude oil have been extracted from this field, generating approximately $3.2 billion in revenue for the country. In the next development phases, utilizing advanced monitoring technologies and new drilling operations (such as the drilling of 24 wells), the goal is to gradually increase daily production capacity to 180,000 barrels.
Sepehr and Jofeir Projects
The Sepehr and Jofeir oil fields, located east of Azadegan in the West Karun region, are among the key projects aimed at boosting the country’s oil production. Their development plan, which faced delayed decisions in recent months, is now finalized, and the project is currently in the procurement stage for equipment and drilling rigs for the second phase. It is expected that by 2025, production from this project will increase by 30,000 barrels per day.
According to the latest figures and reports, the development of the Azadegan, Yadavaran, Sepehr, and Jofeir oil fields represents a major transformation in the country’s oil industry. These projects, through the application of modern technologies, extensive domestic participation, and integrated contracts, not only significantly enhance oil production capacity but also create employment and fulfill social responsibility obligations in surrounding areas.
Successful outputs from these fields, including the trial operation of the South Azadegan processing unit and the planned second-phase developments of the Yadavaran, Sepehr, and Jofeir fields, indicate progress toward long-term goals aimed at strengthening the national economy and Iran’s role in the global oil market.
Trade War Becomes a Threat to Oil Demand
The International Energy Agency (IEA) has announced that global oil demand is under pressure due to the intensification of the trade war and the resurgence of OPEC+ production.
According to the latest monthly report by the IEA, slower oil deliveries in recent months have led the agency to lower its forecast for consumption growth this year. Global markets are expected to face an oversupply of 600,000 barrels per day in 2025, and OPEC+’s unexpected decision last week could add another 400,000 barrels per day to this surplus.
The Paris-based agency stated: “The macroeconomic conditions underlying our oil demand forecasts worsened over the past month due to escalating trade tensions between the United States and several other countries. The surge in tariffs has increased downside risks to the global economy.”
Following OPEC+’s decision to gradually resume production increases starting in April, and former U.S. President Donald Trump’s immediate decision to impose tariffs on imports from China, Europe, Canada, and Mexico, oil was trading close to $71 per barrel in London.
OPEC and its allies in the OPEC+ group surprised oil traders on March 3 by approving a gradual production increase starting next month. Trump had previously urged the group to lower oil prices.
The IEA, which advises major economies, has revised its forecast for global oil consumption growth this year downward by about 100,000 barrels per day, estimating it at approximately 1 million barrels per day. According to the agency’s projections, global demand in 2025 will average 103.9 million barrels per day, with Asia accounting for nearly 60% of this year’s demand growth.
According to a Bloomberg report, the increase in demand will be lower than the 1.5 million barrels per day growth in oil supply, driven by production from the U.S., Brazil, Canada, and Guyana.
The IEA stated that as a result of rising production in these countries, even if OPEC+ opts to cancel the remainder of its planned production increases, global markets will still be heading toward an oversupply.
By Bitumenmag
Oil, Bitumen, Gas
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