Thu Dec 22, 2016 8:33AM
Malaysia’s Petronas has signed an agreement to study Iran’s South Azadegan and Cheshmeh Khosh oil fields. (Photo by Shana)
Malaysia’s Petronas has signed an agreement to study Iran’s South Azadegan and Cheshmeh Khosh oil fields. (Photo by Shana)

Malaysia’s Petronas has signed an agreement to study two Iranian oil fields – the latest in a wave of similar agreements that the country is awarding international energy giants over its most lucrative oil projects.

Shana news agency of Iran’s Ministry of Petroleum reported that the agreement had been signed between Petronas and the National Iranian Oil Company (NIOC). 

The two oil fields are South Azadegan as well as Cheshmeh Khosh. 

The study of the two oil fields will take six months, and should be finished in the second quarter, Petronas said in a statement on its website as quoted by Bloomberg.

The Malaysian company purchased crude from Iran before US-led sanctions were imposed against the country in 2011. 

It was also involved in the development of South Pars Phase 2 and 3 together with France’s Total and Russia’s Gazprom. 

South Azadegan is located in Iran’s southwestern oil-rich province of Khouzestan and already has an early production of 40,000 barrels per day (bpd).

It was discovered in 2001 and was described at the time as the world’s biggest oil find in decades.  It has recoverable reserves of about 2 billion barrels.  

Earlier this month, Iran signed a similar agreement with the global energy giant Shell to study South Azadegan as well as two other fields – Yadavaran and Kish.   

Cheshmeh Khosh is located in Iran’s western province of Ilam.  It was discovered in 1975 but is yet to start production. The projected production target of the field is 18,000 bpd and 115 million cubic feet per day (mcf/d) of natural gas.

Iran signed an agreement with Russia’s Gazprom to study the development of Cheshmeh Khosh. The agreement also involved the assessment of Changuleh oil field which is also located in Ilam province.