Iran is in talks with foreign and domestic companies for the development of South Azadegan, which would be the biggest oilfield that the country shares with Iraq. South Azadegan has the potential to produce 320 000 bpd of oil during the initial phase, before raising recovery to 600 000 bpd.
“We are currently in discussions with these companies and reviewing technical issues,” said Mahmoud Mar’ashi, who is in charge of the project. “If foreign companies are selected, their operation modality will be similar to that by local companies in the form of two-year usance where each firm will have to dig 20 wells.”
In 2001, Iran did award the development of South Azadegan to Japan's Inpex but due to the company's inaction, the project was terminated after five years.
South Azadegan is the third largest oilfield globally, with in-place reserves of approximately 33.2 billion bbls and recoverable resources of about 6 million bbls.