The National Iranian Oil Company (NIOC) has signed a contract with Persia Oil and Gas Industry Development Company (POGIDC) for the development of Yaran joint oilfield., according to a press release.

The agreement, which focuses on maximizing Iranian exploration and production, intends to add 39.5 million barrels of oil (mmbbl) over the next 10 years. The total capital expenditure amounts to $227 million, with expected operating costs reaching $236 million. 

The project includes the drilling of six new wells (three in North Yaran and the other three in South Yaran), drilling of a descriptive well, drilling a well for water injection, workover operations in five wells, equipping 27 production wells in Sarvak Layer with ESP pump, constructing and upgrading ground facilities, conducting laboratory studies, and designing the enhanced oil recovery (EOR) method.

Yaran joint field, which is located 130 km southwest of Ahvaz and west of the South Azadegan field and is shared with Majnoon Field in Iraq, has been developed in two sections: south and north. Back in 2016, an agreement was signed between NIOC and POGIDC to study the Yaran oilfield.