Iran shares at least 28 oil and gas fields with neighboring countries. They include 18 oil fields, 4 gas fields, and 6 oil/gas fields. Rarely is there a country in the world with so many joint reservoirs. Iran shares 12 fields with Iraq, 7 with the United Arab Emirates, 2 with Qatar, 2 with Oman, 1 with Kuwait, and 1 with Turkmenistan.
Based on the latest projections, the bulk of these fields are in the phase of development and production. One of Iran’s petroleum industry policies has been to focus on developing jointly-owned oil and gas fields and making necessary arrangements to enhance recovery from them. Currently, all joint oil and gas fields have been decided upon.
Iran-Iraq Joint Fields
All but one of the 12 fields shared by Iran and Iraq have been developed and are operational. The Naftshahr field, known in Iraq as the Khanah oil field, is still under development. The Dehloran field, known in Iraq as Abu Ghirab, is operational. Talks are underway by the Iranian Central Oil Fields Company (ICOFC) with Sarvak Azar and MAPNA for the second-phase development of this field under EPCF/EPDC and IPC agreements. Aban and West Paydar are also shared by Iran and Iraq. National Iranian Oil Company (NIOC) has signed agreements with Iranian contractor Dana Energy for their development, partnering with foreign firms.
The Changuleh and Azar, which Iraq names Badra, are being developed as long as they supply oil. The first phase of the Azar field was awarded to Sarvak Azar under a buyback deal, which resulted in 65,000 b/d output. The second phase of development of the field was awarded to the same company under a $1.36 billion deal in March 2024 for the accumulated crude oil output of 177 million barrels from 18 wells. The agreement for the Changuleh field development was signed with OIEC last June for 60,000 b/d output with a direct investment of $1.2 billion.
The Sohrab oil field, or Huwaizain Iraq, is in the phase of early production. Development of this field is underway following an agreement with Dana Energy for a $897 million direct investment for 30,000 b/d output. Early production from this field started in March 2024 with 1,500 b/d output.
The Azadegan oil field is divided into a northern and a southern section. Azadegan along with the Yaran field is known as Majnoun in Iraq. Azadegan and Yaran are under development while already supplying oil. The second phase of development of Yaran has been awarded to Persia Oil and Gas Industry Development Company (POGIDC) to operate it with a $218 million direct investment for an accumulated output of 39.5 million barrels over 10 years. The output ceiling for this project has been set at 33,000 b/d.
The Yadavaran field, or Fiha in Iraq, started supplying 85,000 b/d following its first phase of development. For the second phase of development, an agreement has been signed for the drilling of 24 wells with a $567 million investment for an output of 152,000 b/d.
The Arvand oil field, which Iran and Iraq share, is under development. NIOC awarded a contract to Kayson to drill one new appraisal well and work over another one.
Iran-Saudi Fields
Iran and Saudi Arabia share three oil fields, one of which is also shared with Kuwait. The field owned by the trio is Arash in Iran and Dura in Saudi Arabia and Kuwait. The investment needed for developing Arash for 10,000 b/d output amounts to $500 million. The Esfandiar field, known as Lulu in Saudi Arabia, is under development. NIOC plans to produce 5,000 b/d of oil plus 4 mcm/d of gas from this field following first-phase early production. To reach 12,000 b/d production, $600 million in investment is needed.
Iran’s Forouzan, or Saudi’s Marjan, is under development. Enhanced recovery from this field to reach another 12,000 b/d of oil is underway with a €281 million investment.
Iran-Qatar Fields
Iran’s South Pars Oil Layer (SPOL), or Al Shaheen in Qatar, and Iran’s Reshadat, known as Al Khalij in Qatar, constitute the two oil fields shared by Iran and Qatar. Iran is developing its sections in both fields. SPOL outputisset to reach 87 million barrels of accumulated oil under a $497 million agreement.
Iran-UAE, Iran-Oman Fields
Iran’s Salman oil field;Abu Al Bukhoosh in the UAE, and Iran’s Nosrat field, or Fateh in the UAE, are shared by the two countries. Debottlenecking the Salman field is underwayto enhance recovery from its oil platform. Development of Nosrat has also ended and the field is operational. The bulk of oil from this field has been recovered.
The only field Iran and Oman share is Hengam, which the Omanis know as Bukha. Iran is extracting oil from its section. Over recent years, significant volumes of oil have been recovered from it.
Joint Gas Fields
Iran shares eight gas fields with Saudi Arabia, Kuwait, Qatar, the UAE, and Turkmenistan.
An MOU has been signed for developing the Arash field, shared by Saudi Arabia and Kuwait. The Farzad-B field, or Arabia in Saudi Arabia, is under development. It is being developed by Petropars under a $1.78 billion buyback agreement for the production of 28 mcm/d of sour gas and 5,000 b/d of condensate. Constructing a jacket, two offshore platforms, and drilling eight wells as well as installing an onshore gas pipeline are envisaged in this project. Iran’s Farzad-A, or Saudi’s Hasbah, is under development. Due to Saudi production from these fields, gas is migrating towards Saudi Arabia. Once development on the Iranian side has been done, gas migration would be cut significantly.
The South Pars gas field, known as North Dome in Qatar, is operational. Iran is recovering 715 mcm/d of gas from this field. As development projects in South Pars are over, and output loss is expected in coming years, NIOC has signed agreements with local contractors for gas compression in the massive offshore reservoir.
The Belal gas field is being developed on the Iranian side by Petropars for 14.2 mcm/d of raw gas and 15,000 b/d of condensate for a $530 million investment. It is expected to start gas supply in 2028. The Reshadat field is under study in Iran.
The Salman field is under development. An agreement for building a new pipeline from the Salman platform to Siri Island has been signed for €200 million. Iran’s Gonbadli, or Dauletabad in Turkmenistan, is in the phase of production. Development of the field is over and is producing gas now. Some on-surface activities by the National Iranian Gas Company (NIGC) would improve production in this field.