The CEO of the National Iranian Oil Company stressed the need to change the overall format of oil contracts to avoid prolonged projects and increase productivity.

Iran PressIran news: Mohsen Khojastehmehr was addressing the welcome ceremony of the new CEO of the Petroleum Engineering and Development Company (PEDEC) on Monday.

He stressed the need for rapid implementation and of joint oil fields projects in the West Karun region under the plan, adding delays and shortcomings in the development of these fields have been due to defects in the contracts concluded between PEDEC and the developers.

Khojastehmehr said that the West Karun joint oil fields are the top priority of NIOC for development and to raise crude production, adding: "We expect the development process of the South Azadegan joint field to be completed within a year."

The Deputy Minister of Petroleum expressed his gratitude for the measures that had already been taken in the West Karun fields, and said: "Unfortunately, we could not proceed according to plan in this area and it is necessary to compensate for the shortcomings."

He continued: "If we want to complete the process of developing the second phase of North Azadegan and Yadavaran fields along with the development of South Azadegan and Yaran fields, we will need about 11 billion dollars in investment."

Khojastehmehr further said with the development of West Karun fields, more than one million barrels per day of crude oil will be produced in the region, which is one of NIOC’s priority projects.