Yadavaran Field oil field is one of the

NIOC Recent Discoveries Proven oil reserves in Iran, according to its government, rank fourth largest in the world at approximately as of 2013, although it ranks third if Canadian reserves of unconventional oil are excluded. This is roughly 10% of the world's total pro ...

which is located in

Khuzestan Khuzestan Province (also spelled Xuzestan; fa, استان خوزستان ''Ostān-e Xūzestān'') is one of the 31 provinces of Iran. It is in the southwest of the country, bordering Iraq and the Persian Gulf. Its capital is Ahvaz and it cover ...

Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...

. The name is new, as the field is made up of two former fields, Koushk (discovered in 2000) and Hosseinieh (discovered in 2002). After researchers discovered that the two fields were actually connected, the field was renamed as the Yadavaran Field. The field is estimated to have reserves of up to 17 billion barrels (2.7 km³) of oil, with 3 billion barrels (0.5 km³) considered to be recoverable. On October 29, 2004, Iran negotiated a $70 billion deal with

Sinopec China Petroleum & Chemical Corporation (中国石油化工股份有限公司) or Sinopec (), is a Chinese oil and gas enterprise based in Beijing. It is listed in Hong Kong and also trades in Shanghai. Sinopec Limited's parent, Sinopec ...

, giving the Chinese company a 51% stake in the field's development. As part of the deal, China agreed to buy 10 million metric tons of

liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the vol ...

(LNG) from Iran per annum for 25 years. In December 2007, NIOC and Sinopec signed the final agreement for development of Yadavaran oil field. Based on the contract field will reach to the of production capacity. Sinopec will be operator with a 51% stake in the project and NIOC holding the remaining interest. Total project cost at around US$2 billion. In a third phase the field is expected to reach of production capacity. The field will be developed under an enhanced Iranian buyback contract. The most significant revision in terms from earlier versions is that the partners will only agree the target capital cost of the development following receipt of construction tender submissions. This should reduce the contractors’ exposure to value erosion through cost inflation. The oil field is currently at an early production of after 16 months development by the Chinese contractor.

References

{{Coord, 30.988352, N, 48.042355, E, source:cswiki_region:IR, format=dms, display=title Oil fields of Iran Buildings and structures in Khuzestan Province Geography of Khuzestan Province

See also

References