Iran’s state-owned companies on August 17 signed 13 contracts with domestic contractors to increase crude production capacity by more than 180,000 bpd. During the signing ceremony, oil minister Bijan Zanganeh said the project is part of Iran’s policy to regain lost market share when sanctions over its crude exports are lifted.
The $1.8 billion contracts are the second stage of a broader package to expand oil output capacity from 33 fields by 280,000 bpd. In the latest award, 14 local contractors sgned 13 contracts awarded by the National Iranian Offshore Oil Company (NIOOC), and National Iranian South Oil Company (NISOC).
The first and second package contracts cover drilling 165 new wells and repair of 71 existing wells which will be completed within two and a half years from the signing. The first stage has progressed by 25% and includes ten contracts worth $880 million signed in 2019 with a target to expand production by 75,000 bpd.
