Tehran (IP)- Oil and gas projects worth $15 billion will be inaugurated by the end of the current Iranian calendar year (March 19, 2024), stated Oil Minister Javad Owji on Friday.

Iran PressIran news: Delivering a speech at the inauguration ceremony, the Iranian oil minister said, “Today’s projects account for $2.2 billion of the target value, $15 billion.”

The launch of projects would be in line with this year’s slogan “Inflation Control, Production Growth” announced by Leader Ayatollah Seyyed Ali Khamenei.

Elaborating on the first phase of the Persian Gulf Hoveyzeh Gas Refining Company inaugurated during the ceremony, Owji added the project has been implemented to collect associated petroleum gas (APG) of joint oil fields.

At present, he continued, around 400,000 barrels of oil are being extracted from Azadegan, Yadavaran, Yaran, and other joint fields, but their APG, also known as flare gas, are burnt off.

Following the utilization of the Hoveyzeh project, associated gases of sour oil that are poisonous and damage the environment in Khuzestan Province will be processed, and produced sweet gas will be injected into the national grid, the minister explained.

The first phase’s daily APG processing capacity amounts to 250 million cubic feet, said Owji, quoting Persian Gulf Petrochemical Industries Company (PGPIC) Managing Director Abdolali Ali-Asgari as saying that the second phase would come on stream with a $1.4 billion investment by mid-March 2024 and the capacity would hit 500 million cubic feet.

Heavy compounds produced by the refinery will be transferred to Bandar Imam Petrochemical Company (BIPC) through a 186-kilometer pipeline to supply its feedstock, he stated.

The minister also pledged that the NGL 3100 plant will be also inaugurated in Ilam Province, western Iran.

Owji said the country’s oil production has now hit 3.1 million barrels per day (mbd), adding the figure will rise by 45,000 bpd, as a new project was inaugurated today by President Seyyed Ebrahim Raisi to boost extraction from joint Azadegan oil field.

The project has been implemented after 40 new wells were drilled, completed, and put into operation in the field shared with Iraq.

Based on the master development plan (MDP), the project of the Azadegan oil field consists of two stages.

The first phase comprises the drilling and the completion of 206 wells, the installation of overground facilities, 10 manifolds, and two separation plants, and the construction of the Central Treatment Export Plant (CTEP) with a daily processing capacity of 320,000 barrels.

South Azadegan oil field, located 80km southwest of Ahvaz, the capital of Khuzestan Province, adjacent to the Iran-Iraq border, is a joint field having an area of 765 square kilometers, which is estimated to have 27 billion barrels of crude oil in place.     


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