The National Iranian Oil Company (NIOC) signed an agreement for which the CAPEX is $2.4 billion with Pasargad Energy Development Company (PEDC) for the integrated development of Sepehr and Jofeir Fields, Fars News reported.

The deal aims to produce a maximum of 110,000 barrels per day (b/d) with a total output of 512 million barrels from the two fields after 20 years.

The Sepehr and Jofeir fields were discovered in 1976 in the Khuzestan province, Southwestern Iran, in the northeastern part of Abadan plain, 60 kilometers southwest of the oil-rich city of Ahvaz.

The CAPEX calculated for the development of the fields is estimated at $2.426 billion, indirect costs have been estimated at $412 million. During the signing ceremony, NIOC Deputy Head for Engineering and Development Affairs, Gholamreza Manouchehri, stated that the projected revenue is $31 billion over the course of the 20 years. “This is while the developer will gain $970 million in the project,” he added.

The 20-year contract will be the first Iran Petroleum Contract (IPC) awarded to a domestic firm and marks the third deal made within the newly-developed IPC framework.