Darkhoein Oilfield Phase 2 Operational Next Year

Arvandan Oil and Gas Company Managing Director Salbali Karami said the second phase of development plan of Darkhoein oilfield would become operational in the “Government Week” in 2008 – from Aug. 30 to Sept. 5. The official, who offered a report on the development of the field to members of National Iranian Oil Company’s (NIOC) board of directors and members of National Iranian South Oil Company’s (NISOC) directorate, said the second phase would produce 160 thousand barrels of oil per day.

He added the field’s current daily output stood at 50 thousand barrels and the figure would soar to 100 thousand barrels next Jan.

“The aim behind development of second phase is to increase the daily production from 50 to 160 thousand barrels,” said Karami, adding the third phase would lift the daily output by 100 thousand barrels.

The development plan of Darkhoein oilfield was underway in collaboration with the Italian company Eni, he said.

The operations comprise the drilling of 15 development wells, three injection wells, and one to discharge extra water.

In the meantime, 210 million cubic feet of gas is injected per day, an exploitation unit is built to lift nominal capacity to 165 thousand barrels of oil a day, and all pipeline and wellhead equipment become operational.

Darkhoein oilfield is located at 30km north of Khorramshahr and 100km south of Ahvaz, southern Iran.

Italian giant Eni and Iranian firm Naftiran Intertrade Co. (NICO) have signed buyback contracts to develop the first and second phases of the field.

The first phase of the project for development of Darkhoein oilfield was supposed to come on stream 34 months after conclusion of related contract, that was in May this year but it became operational one month later.

The oilfield is expected to yield 1.29 billion barrels of oil in a 30-year period. The field is predicted to earn the country over 360 million dollars a year after completion of the first phase and 1.16 billion dollars a year after completion of its second phase.

The two-phased development project for production of 160,000 bpd is expected to cost 920 billion dollars in all.

Iran is estimated to pay off the cost in six years, 60 percent of which to be paid through sale of oil. Three wells have already been drilled in the area in 1964, 1977, and 1992. The field has a reservoir of about 3.6 billion barrels of in-place oil.