Changuleh Oil Field Up for Investment

Changuleh Oil Field Up for Investment

The Changuleh oil field, which is located in western Iran, is among fields envisaged by National Iranian Oil Company for development. After the new model of oil contracts, known as the Iran Petroleum Contract, was unveiled, Changuleh was among oil fields introduced for foreign investment. NIOC plans to develop Changuleh in two phases.

According to Iran Petroleum Ministry data, there are more than 102 oil fields in Iran, 28 of which are shared with neighboring countries. Joint onshore fields are shared with Iraq, while the offshore ones are shared with the Persian Gulf and Gulf of Oman nations.

Rival countries will not wait for Iran to finish development of its sector to start recovery from their own share. Every day, Iran is seeing a decline in its share from the joint oil fields without even extracting a single barrel.

The Iran administration has taken measures to raise the share of joint fields in national output from the current 7%. Meantime, the Iranian government’s economic plans have given rise to more obligations in the oil sector, like bringing the country’s oil production capacity to over 5.7 mb/d within four years.

Two-Phase Development

Changuleh, an untapped field, is shared with neighboring Iraq. Exploration Directorate of NIOC has also confirmed that Changuleh is jointly owned by Iran and Iraq.

At least 19 wells need to be drilled for recovery from this field whose development is envisaged in two phases.

In Phase 1, which is expected to last 40 months, four wells will be drilled while two existing exploration wells will be subject to work over, resulting in the production of 15,000 b/d of oil. Meantime, a 100-km oil pipeline as well as oil and gas separation facilities is to be built.

In Phase 2, which is expected to last 60 months, 13 new wells as well as infrastructure facilities are envisaged. That would bring production from Changuleh to 40,000 or 50,000 b/d.

In order to carry oil from Changuleh in the early production stage, a 130-km pipeline, 8 inch in diameter, will be used.

A number of foreign firms have shown willingness to develop this field, and negotiations have been held with NIOC to that effect. Despite US sanctions targeting Iran’s petroleum industry, NIOC is in talks with foreign parties for investment in this field.

In 2017, Iran’s Oil Industries Engineering and Construction Co and Russia’s Gazprom Neft signed a non-disclosure agreement for developing Azar and Changuleh. The agreement was endorsed by NIOC. OIEC and Gazprom Neft agreed to hold meetings regularly to exchange views on technical, financial and legal aspects of cooperation.

Changuleh in Iraq

Changuleh is known as Badra in Iraq. It is among hydrocarbon fields in the Anaran Block. It is located between the cities of Mehran and Dehloran in Ilam Province. Bangestan Formation in Changuleh is the second most important field in Ilam.

Scroll to Top