According to the public relations department of Sarvak Azar Company and Ahdaf Investment Group, the development of the first phase of Azar oil field was assigned to the consortium of Ahdaf Investment Companies and Oil Industries Engineering and Construction (OIEC) in April 2012 to be executed under a buy-back agreement. After the ratification of this agreement, the development of the joint Azar Oil Field was entrusted to Sarvak Azar Engineering and Development Company.
The work description for the second phase of the Azar Oil Field development is divided into two sections namely development and production. In the development section, extensive operations are on the agenda to drill 18 production wells and one wastewater disposal well, along with the construction of wellhead facilities and flow pipelines to increase production by 177 million barrels of oil during the contract period. These measures are important steps towards continuing to increase the extraction from the Azar Oil Field, as well as economic development and job creation in Ilam province. With the achievement of the production goals of the second phase, the development of the Azar Oil Field will result in production and export a total of 304 million barrels of oil from this joint field from wells drilled in two phases.
In an interview, the CEO of Sarvak Azar Engineering and Development Company explained the dimensions and conditions of the second phase of the Azar Oil Field development project. The text of interview with Hamidreza Tavassoli is as follows:
Q: Given that the second phase of the Azar oil field development and production plan has officially been launched, what is Sarvak Azar’s main approach at this stage?
A: Since the IPC contract period is designed for 20 years, our goal in the second phase of development is to increase production, upgrade capacity, optimize processes, and create infrastructure that will stabilize this oil field’s future for many years to come. In fact, at this stage, our vision is completely forward-looking and we are looking for a more economical, sustainable, and productive development of the Azar oil field.
The company’s main approach in the second phase is to move towards targeted development, taking into account the general policies of the Seventh Development Plan, with the priority given to the economic progress combined with justice, along with smart development, sustainable production, and the creation of long-term value for the country’s oil industry.
In this phase, by drilling 18 new wells and one wastewater disposal well, we intend to have optimal management of the reservoir while ensuring sustainable production.
Q: What strategic achievements would this phase bring about for the country’s oil industry?
A: The first and most important achievement of this project is to increase Iran’s extraction from a shared reservoir; a reservoir from which the Iraqi side is also currently producing. Based on the reservoir engineering plans and studies, the implementation of the second phase of the Azar field development will increase approximately 177 million barrels of oil and 213 billion cubic feet of gas associated with oil to provide NGL-3100 feedstock during the contract period. This significant increase would play an important role in strengthening the country’s energy security and stabilizing Iran’s position in tapping from shared reservoirs.
Therefore, the second phase of the Azar oil field development would not only increase production from the joint field from a national perspective, but would also bring about important strategic, economic, and managerial achievements for the pension and welfare funds of the oil industry employees and the country.
Q: Given the technical complexities and specific conditions of the Azar oil field, what challenges lie ahead in the implementation of the second phase and how theyt will they be managed?
A: As you know, the Azar oil field is one of the most complex oil fields in Iran whose development and production have always been accompanied by many technical and operational challenges. In the second phase, despite the technical difficulties, international conditions, and restrictions caused by sanctions, we would try to manage and overcome the challenges ahead by utilizing the lessons learned from the first phase and with careful planning.
One of the measures we are considering in the second phase is the drilling of multiple deviated wells. This type of drilling, which is located between a vertical and horizontal well, helps increase the productivity and production capacity of the wells.
On the other hand, the use of downhole pumps (ESP) is one of our key solutions for managing reservoir pressure drop and increasing sustainable production. The purchase of this equipment has begun and we are planning to utilize new technologies related to these pumps.
In the field of drilling, considering the experience of the first phase wells, we have decided to use artificial intelligence in the second phase in order to analyze drilling data, optimize the drilling path, and reduce the duration of operations in our program. Also, some new drilling technologies that have recently been made available to the country would be used in this project to increase the speed, accuracy, and quality of drilling operations and reduce the period of operation.
In addition to considering the necessary strategy and planning to manage the challenges of the Azar old field, some issues have been given priority including smart application of technology, benefiting from past experiences, implementing precise engineering plans, and full compliance with HSE principles.
Q: How do you evaluate the role of executive teams and human resource development in advancing this project?
A: In exploration and production (E&P) companies, human resources are the most important element in the development of upstream fields. One of our honors in the development of the first phase of the Azar oil field has been the empowerment of local capacities and taking maximum benefits from the knowledge and skills of colleagues in the field and in the main office, who have accompanied us on this difficult path with firm determination and full commitment.
In the second phase of development, one of the most important upcoming plans is to use past lessons learned and improve the skills and knowledge of employees with the aim of realizing the missions and goals of Sarvak Azar Company. This approach will help us achieve sustainable exploitation, increase efficiency, and move on the path of intelligent development.
Q: How do you outline the final vision of the second phase?
A: Our vision in the second phase of the development of the Azar oil field is to achieve sustainable and economic production, based on smart reservoir management. Our goal is not simply to increase production in a short period, but to create infrastructure for the coming years and create long-term added value for the country's oil industry. The use of modern technologies, including artificial intelligence, modern downhole equipment, and smart monitoring systems in drilling, plays a decisive role in achieving this vision. These technologies help us increase operational efficiency, reduce risks, and increase the speed of project implementation.
The ultimate vision of the second phase is that, in addition to fulfilling the contractual goals and commitments, the Azar oil field will become a national model for the development of joint fields using modern technology, safe management, and long-term productivity; a model that will not only ensure today’s production, but also strengthen the country’s oil industry’s production capacity for tomorrow. We hope that the development of the second phase of Azar oil field will become a successful example of combining sustainable production, advanced technology, and environmental responsibility.