Introduction

The Karanj oil field is an Iranian oil field located 120 kilometres (75 mi) east of the Ahvaz City, in Khuzestan Province.It was discovered in 1963 and the production was started after installing production facilities in 1964.Oil production of Karanj field is about 200,000 barrels per day (32,000 m3/d).The field has a 650-metre thick oil column with a API gravity of 33.9 deg. Its oil reserves have been estimated at 11.2 bn barrels, with gas at about 3.5 TCF.A gas injection project at Karanj was completed in 1995. The field is owned by state-owned National Iranian Oil Company (NIOC) and operated by National Iranian South Oil Company (NISOC).

In December 2016, Pergas consortium signed a cooperation agreement with Iran southern petroleum corporation. The former needs to study the development of Karanj and Shadegan oilfields and submit the research results and development proposal to Iran southern petroleum corporation within six months.

Reserve Information

Estimated oil in place:11,043 million barrels 

Recoverable oil:5,700 million barrels

Development Plan

In May 2018, The  first heads of agreement (HOA) agreement was inked by Director of National Iranian South Oil Company’s (NISOC) Bijan Alipour and London-based Pergas Consortium Managing Director Colin Rowley.

An HOA is a non-binding document that needs to be adopted into a parent contract in order to be enforceable. once the contract is finalized for the development of Karanj oilfield, it could be possible to produce a maximum of 200,000 barrels per day and a total of about 655 million barrelsover the next 10 years.

Direct capital costs are estimated at $1.167 billion and indirect costs at $187 million.

The key parts of the contract include boosting wells' pressure by increasing gas injection by three times, establishing compressor stations, construction of facilities to harness and transfer the associated petroleum gas (APG) with the capacity of 280 million cubic meters per day, establishment of desalting units to process 100,000 bpd of crude, drilling 35 new wells, and upgrading 15 other wells. 

Owner:

National Iranian Oil Company (NIOC)

Operator:

National Iranian South Oil Company (NISOC)