Shadegan Oil Field
Introduction & Significance
The Shadegan Oil Field is a strategically significant on-shore oil asset located in the southwest of Iran, in the Khuzestan Province. Discovered in 1968, the field entered production in 1988, and has since been an important component of Iran’s upstream oil infrastructure under the stewardship of National Iranian Oil Company (NIOC) and its subsidiary National Iranian South Oil Company (NISOC).
Shadegan holds particular value because:
- It resides within the prolific geology of the Zagros fold-belt / Dezful Embayment region, which is proven for hydrocarbons.
- It represents a mature on-shore opportunity where secondary / tertiary recovery methods and infrastructure integration can improve value.
It is part of Iran’s strategic plan to maintain and expand on-shore oil production despite challenges with sanctions, ageing fields and investment constraints.
Location & Geology
History
&
Development Timeline
1968
Discover
Discover
Discovery of the Shadegan Oil Field.
1988
Production
Production
Commencement of production operations.
November 2022
Recent years
Recent years
In November 2022, it was announced that the Russian firm ZN Vostok LLC would enter the development of the field beginning 2023 under a new contract model.
2022 (September)
Well Fire Sabotage
Well Fire Sabotage
A fire incident occurred at one of the operational wells in the field, reportedly due to sabotage, highlighting the operational risk profile.
Reserves & Production
- According to data compiled by the monitoring platform Global Energy Monitor, the original oil-in-place (OOIP) for Shadegan was approximately 3,098.5 million barrels (as of 2007) and the recoverable reserves were estimated at about 781 million barrels.
- Production: The field’s oil production is often cited at around 25.55 million barrels per year (≈ 70,000 barrels per day) as of recent years.
- Infrastructure: The field is connected via pipeline systems, one of which is the “Shadegan-Maroun 4 Oil Pipeline” linking to nearby facilities with a capacity of ~130,000 bpd.
Infrastructure & Operational Features
Gathering & Production Facilities
The field is operated by entities under NIOC/NISOC / Maroun Oil & Gas Producing company.
Pipeline Connectivity
The presence of dedicated oil transfer pipelines ensures that crude from Shadegan is efficiently tied into regional networks for processing and export.
Contractual Framework
The involvement of international firms (e.g., Russian contractors) indicates efforts to inject fresh capital, modern technologies and contract models into the field.
Challenges & Opportunities
Challenges
- The field is mature, meaning reservoir pressure maintenance, water cut management, and decline rates are likely operational issues.
- Geologic complexity (faulting, heterogeneous reservoirs) demands sophisticated reservoir modelling and enhanced recovery techniques.
- External risks such as sabotage and security incidents (e.g., the 2022 fire) increase operational uncertainty.
- Sanctions, access to upstream service technologies, and cost-effective investment remain constraints for Iranian fields.
Opportunities
- Improved recovery potential: With modern EOR (Enhanced Oil Recovery) techniques, there is potential to increase the recovery factor and extend plateau production.
- Infrastructure synergies: Integration with nearby fields and shared pipeline / processing networks reduces per-barrel infrastructure cost and improves economics.
- Strategic value: For Behtash Sanat Arta Kish, participation (directly or via partner entities) in the development of Shadegan presents strong alignment with your company’s capabilities in well-services, acidizing, stimulation and field optimisation, leveraging your specialization.
- New contract models: The shift towards alternative development contracts (e.g., IPC variations) may unlock further investment and operational flexibility.