Iran has begun first oil production from a field shared with Iraq after years of delay, the Tasnim news agency reports.
The North Yaran field began producing the first oil on Monday night, the news agency said, citing its development manager Arash Baqerzadeh as saying on Tuesday.
Production from the field has begun with 30,000 barrels per day on the back of 10 wells drilled so far, he added.
Iran has five joint fields with Iraq, which include North Azadegan, South Azadegan, North Yaran, South Yaran and Yadavaran. The North Yaran oil field is located approximately 130 kilometers west of Ahvaz, the capital of the resource-rich Khuzestan province.
Iran’s priority is to develop jointly-owned oil and gas fields which are being dried out by Iran’s neighbors, including Yaran, Azadegan and Yadavaran.
Azadegan is the world’s third largest oil field with in-place reserves of about 33.2 billion barrels and recoverable resources of about 6 billion barrels. South Azadegan holds in-situ reserves of over 25 billion barrels, of which 2 billion are recoverable.
Iraq has been producing 210,000 barrels per day from South Azadegan since April 2014. The country is targeting a production plateau of 1.8 million bpd from the field, having awarded it to a consortium led by the Royal Dutch Shell.
In March, the National Iranian Oil Company and France’s Total signed a confidentiality agreement on the development of the South Azadegan oil field.
Iran on Tuesday signed a preliminary $4.8 billion gas agreement with Total, the first such deal after a nuclear accord with world powers removed sanctions.