TEHRAN Sept. 27 (Shana) – Technical negotiations are underway with six domestic and foreign firms for drilling 70 wells in South Azadegan oil field in south western Iran, said an official in the Petroleum Engineering and Development Company (PEDEC).

“There are currently 16 drilling rigs operating on some 100 wells while the project development target includes 185 wells. We are in talks for drilling the remaining wells,” Mahmoud Mar’ashi, contractor of the field’s development, told Shana.

“Similar to their domestic counterparts, the investing foreign firms will be each delegated with 20 wells for two-year usance framework,” he added.

The winning firm, Mar’ashi said, has to set up a minimum of four drilling rigs on the field.

In June, Petroleum Minister Bijan Zanganeh said drilling of 40 wells in the massive South Azadegan field is to be put to tender soon.

“Based on plans, 150 wells are to be drilled in the first phase in South Azadegan. The number of wells will increase to 185 in the second phase,” he said.

In the first phase of the development of South Azadegan field, 320,000 b/d of crude will be recovered. For that purpose, 385 wells need to be drilled in this field. So far, 12 wells have been drilled. The initial budget approved for the development of South Azadegan is 500 million dollars plus 500 trillion rials.

By SHANA