Speaking on Tuesday during the signing ceremony of the memorandum of understanding for the integrated development of the joint Azadegan oil field between the National Iranian Oil Company, banks and exploration and production companies, the president called signing of a $7-billion memorandum of understanding for investment in the joint Azadegan oil field as an example of mobilizing the country's domestic power, and said: “One of the goals and reasons for the implementation of economic reforms is to provide the basis for attracting capital in the field of production.”
He considered the realization of the 8% economic growth target to be dependent on the increase in investment, and added: “The work done today is the result of the synergy and coming together of large economic companies as drivers of the economy to implement the integrated development plan of the joint Azadegan oil field as the first step in creating the ground for capital attraction in the path of production and economic growth.”
The president considered the participation of banks as the second step of this move, and noted: “Economic experts agree that creating liquidity is a cause for concern when it is not directed towards production, but if the increase in liquidity is spent on the prosperity and strengthening of production bases, it will not cause any concern.”
Raisi underlined the oil and petrochemical sectors as two of the most important sectors for attracting investment and boosting production, and stated: “What happened today was the signing of a memorandum of understanding between banks and large economic and technical companies for the implementation of a large oil project, in addition to providing resources which is an example of mobilizing domestic power and provides the basis for improving the confidence of private sector investors and the people to participate in such major projects.”
Iran Eyeing $115bn in Profits by Developing Azadegan Oilfield: Min.
Speaking in a televised interview regarding the signing ceremony of the memorandum of understanding for the integrated development of the joint Azadegan oil field between the National Iranian Oil Company (NIOC), banks and exploration and production companies on Tuesday evening, Mr. Owji said Azadegan is a joint oil field between Iran and Iraq; the models for the development of the joint field have been designed with the planning and studies carried out by the NIOC in recent months, but financing was one of the important concerns about the project, which today using the capacity of banks and holdings, this issue was also sorted out.
Appreciating the president and the first vice president for supporting this project, he added: “With an investment of nearly 7 billion dollars, the production capacity of this field will increase to 220,000 barrels in the second year of its development and in the next seven years, to 570,000 barrels of oil per day [from currency 190,000 b/d].”
The Minister of Petroleum stated: “During the 20-year operation period of Azadegan field, if we consider the base price of oil per barrel to be 80 dollars, it will generate more than $115 billion in revenue and income for the country and create employment for 24,000 people. Also, operational measures for the enhanced production of this field will also be on the agenda soon.”
According to the NIOC, the project will entail drilling of more than 420 production and injection wells, construction of 5 manifolds and installation of 315 to 320,000 kilometers of pipelines which will all be carried out by domestic developers and contractors.