Foroozan

Forouzan Oil Field Profile

Location and Geographical Context

The Forouzan oil field is located in the Persian Gulf, approximately 100 kilometers south-west of Kharg Island, Iran. It lies along the border between Iran and Saudi Arabia, with the Saudi Arabian portion of the field known as the Marjan Field.

Ownership and Operation

The Forouzan oil field is owned by the National Iranian Oil Company (NIOC) and operated by its subsidiary, the Iranian Offshore Oil Company (IOOC).

Discovery and Initial Development

The Forouzan oil field was discovered in 1966. It commenced operations with an initial production capacity of 100,000 barrels of oil per day (bopd) in 1987. However, the output declined to 40,000 bopd by 2000.

Reserves and Production

The field has estimated recoverable reserves of 2.3 billion barrels. Notably, more than 80% of the hydrocarbon reserves of the field lie in the Saudi Arabian waters.

Infrastructure and Facilities

• Original Development: The field was originally developed with 66 wells, two production platforms, one processing unit, 12 wellhead platforms, three separators, one desalting tower, and two living quarter platforms (FX and FY).
• Redevelopment: As part of the redevelopment, 24 new production wells were drilled, and two new offshore platforms were installed, including the FZ-A processing platform and the FY-A living quarters platform. Additional infrastructure includes a 102km-long, 24-inch diameter pipeline to transfer associated gas to the LNG complex in Kharg Island, 52.1 km of in-field and gas lift pipelines, and a 17.2 km-long cable.
• Recent Expansions: Two new platforms, the F18 wellhead platform and the FY-B living quarters platform, were installed. The F18 platform facilitates the drilling of seven new production wells and is located at a water depth of 48.7 meters, approximately 2.1 km away from the existing FX platform.

Production Process

• Hydrocarbon Separation: The hydrocarbons produced are separated into crude oil, associated gas, and water. The crude oil is exported to the onshore Kharg Island oil terminal via a 100km-long, single-line, 20-inch diameter subsea pipeline. The produced water is released back into the sea.
• Gas Handling: Initially, approximately 189 million cubic feet per day (Mcfd) of associated gas was flared. However, a new pipeline was laid to transfer up to 258 Mcfd of associated gas to the LNG complex in Kharg Island.

Renovation and Expansion Details

• Contractors Involved: The renovation and expansion projects involved several contractors, including Iran International General Contractor Company (IGCC), Darya Fan Qeshm Industries Company (SADAF), Iranian Offshore Engineering and Construction Company (IOEC), Nardis-Arpa Group, Kito Enterprises, Tasdid Offshore Development, Dana Energy, Delta Offshore Group, and InCoPars.
• Financial Arrangements: A buy-back contract worth $585 million was signed with PetroIran Development Company (PEDCO), a subsidiary of NIOC, for the development of Forouzan and Esfandiar oil fields in May 2002.
• Project Scope: The project included the maintenance and revamping of production capacity, with 12 new wells, 11 wells to be repaired, and 3 re-entry wells. It also involved the fabrication and erection of two new platforms and the laying of three sea pipelines measuring 27 km, along with cabling of four fiber optics. The contract value was approximately Euro 290 million.

Current Status and Future Plans

• Production Capacity: The redevelopment aims to double the field’s crude output to 80,000 bopd and increase its gas and condensate production capacity. As of recent updates, the field's production has been stabilized and expanded through the installation of new platforms and wells.
• Technological and Financial Challenges: Iran's oil production, including at Forouzan, faces challenges such as low reservoir pressure in mature fields, which requires the use of enhanced oil recovery (EOR) techniques and gas injection to maintain production levels. The lack of foreign investment due to sanctions has prompted reliance on local companies, which are limited in capital and technology.

Environmental and Operational Considerations

• Environmental Management: The field's operations are subject to environmental management and safety protocols. Efforts include the strengthening of environmental management systems, oil spill response planning, and compliance with international conventions such as those of the International Maritime Organization (IMO).

In summary, the Forouzan oil field is a significant offshore oil field in the Persian Gulf, managed by IOOC under NIOC, with ongoing redevelopment efforts to enhance its production capacity and address the challenges of mature field management.