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the future
Modern oil exploration in Iran started in
1901, with the first commercial oil discovery
coming at Masjid-I-Sulaiman seven years
later. Today, Iran is one of the world's
leading hydrocarbon nations, producing
more than 3,600,000 B/D in 1997 and
exporting just over 70% of that total.
Two-thirds of Iran around one million
square kilometers is covered by
sedimentary strata that could contain oil
and gas. Independent studies indicate that
there are 2030 billion barrels of oil still to
be found in the country. Unlocking the
potential of these reserves will ensure that
Iran maintains its position as a major oil and
gas producer.
Figure 5.1: Driller George Bernard Reynolds, master of the oil springs,
(far left) lunching in Iran. Reynolds ignored instructions to stop drilling and
found oil at Masjid-i-Sulaiman
History
History
Geophysical pioneers
Some of the earliest geophysical surveys
for petroleum exploration were
performed in Iran (Figure 5.5). Torsionbalance gravity measurements,
experimental magnetic surveys and
electromagnetic surveys were all
conducted in the 1920s.
The new technique of seismic
refraction was imported, but the
greatest successes were achieved
through local modifications and
improvements that finally allowed the
true, subsurface, anticlinal structures to
be accurately mapped even when the
surface structure was misleading.
In the early 1930s, a joint
geologicalengineering study
demonstrated that the Asmari in the
Masjid-i-Sulaiman field was a single
hydraulic unit with good communication
through fractures. This field proved to
Oil nationalization
The National Iranian Oil Company
(NIOC) was established in 1951, and by
1954 an exclusive oil exploration
concession had been granted to a
consortium of American and European
oil companies.
In 1955, the Exploration Division was
formed by NIOC. This department had
responsibility for exploration and
exploitation of oil and gas throughout
the country, with the exception of
southwest Iran which lay in the
consortiums concession area.
The consortium was abolished in 1973,
and replaced by the Oil Service
Company of Iran (OSCI) that, under
NIOC guidance and supervision,
conducted exploration and production
activities in southwest Iran.
Following the Islamic Revolution of
1978, exploration and production
activities were regrouped under two
directorates (NIOC North and NIOC South
Fields) and a single affiliate company (the
Iran Offshore Oil Company).
In the mid-1970s, Irans oil exports
(around 5 MMB/D) accounted for around
15% of the world total. By 1981,
Figure 5.4: Early drilling operations in Iran were often dramatic. At Alborez
the flare from this well caused huge mud and lava flows
History
History
Characterizing Irans
reservoirs
NIOC earth scientists, working in
partnership with GeoQuest have built
up extensive experience in analyzing
the reservoir properties and
characteristics of Iranian oil fields such
56.0
(40.0%)
OECD
Former Soviet
Union
Other
Middle East
Iran (21%)
Iraq (3.1%)
Kuwait (1.5%)
Saudi Arabia (5.3%)
UAE (5.8%)
History
History
Counting on experience
Access to the right support
infrastructure means that the Iranian oil
industry can expect the highest levels of
oilfield performance from service
companies. Recent projects carried out
for NIOC include the drilling of
horizontal wells and assistance with
major geophysical surveys.
Horizontal wells are crucial for the
effective development of many Iranian
oil and gas reservoirs. The pace of
reservoir development in modern Iran
means that Schlumberger has been
asked to support the drilling of
horizontal wells on up to four rigs
simultaneously, and provide state-of-theart well plans, surveys and anti-collision
calculations to ensure their success.
Offshore geophysical surveys are
helping to identify new oil and gas
accumulations and to delineate existing
fields. Geco-Prakla currently provides
training in survey acquisition and
processing techniques for the crew of the
NIOC Pejwak (formerly the Geco Echo).
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Tehran
Gas field
Alborz
Oil field
Sarajeh
Technology in action
New techniques for the development
and management of oil and gas fields
are helping Iranian geoscientists and
engineers to optimize their resource
management strategies. Improved
understanding of reservoir architecture,
petrophysical characteristics and flow
paths allows reservoir managers to
achieve an optimum balance between
production rates and total recovery
rates. The pioneering geophysicists of
the 1920s laid the foundations for
recent developments such as advanced
borehole geophysics and 3D and 4D
seismic surveys.
Modern oilfield technology has
helped Iran to open its oil and gas
fields and establish huge reserves
(Figure 5.9). The challenges
encountered in those fields and the
problems solved by Iranian engineers
have, in turn, helped to shape oilfield
methods and to rewrite the rules of
exploration and development.
Gas pipeline
Oil pipeline
International border
Chia
Surkh
Naft Emmam Hassan
Sarkan
Khaneh
Veyzenhar
Tang Bijar
Kabir Kuh
Halush
Dehluran
Abu Ghuraib
Maleh Kuh
Kabud Qaleh Nar
Lab-E-Safid
Lali
Danan
Chashmeh
Zeldi
Khush
Paydar Ramin
Mushtag
Ahwaz
Par-I-Siah
Masjed Soleyman
Naft-Safid
Haft Kol
Paris
Shurom
Gachsaran
Ab Tevmur
Darquain
Sarvestan
Nowruz
Nargesi
Dorouti
Esfandiar
BB
Foroozan
Marjan
Kuh-I-Mand
FA
Nar
Pars
The
Namaki
Bandubast
Dalan
Sorosh
Iran
Aghar
Bushgan
Abuzar
Kangan
Assaluyeh
Gavarzin
Varavi
Salakh
Lamard
Henjam
W Bukha
Gul
f
BH
Bukha
Saleh
Baih
History
History
Production enhancement