In contrast to Iran's efforts to bring new offshore fields online, NIOC's onshore field development work is concentrated mainly on sustaining output levels from large, aging fields, largely through enhanced oil recovery (EOR). In addition, NIOC recently has brought several relatively small onshore fields online, including the 50,000-bbl/d Nargesi, 10,000-bbl/d Kilur Karim, and 5,000-bbl/d Karangan fields. Iran also is developing new reservoirs at fields such as Bibi Hakimeh, where deep formations at 13,000 feet have been proven to contain light, 37° API crude oil.

Gas injection projects are expected to increase onshore oil production capacity at least 300,000 bbl/d by 2000. Most of this increased capacity will come from the 570,000-bbl/d Marun field, the 130,000-bbl/d Karanj field, and the presently inactive Parsi fields. Water encroachment and severe pressure problems have restricted oil production at these fields. Limited access to foreign investment has led to the use of local Iranian service companies for technical reservoir work at onshore fields. Due to financial and technical constraints, this has resulted in prolonged delays in capacity additions at fields like the 15-billion barrel (in-place) Parsi field. At the Karanj field, gas injection facilities were successfully installed in 1995, but expected output in the range of 225,000 bbl/d has failed to materialize. In early March 1998, President Khatami inaugurated a second phase of gas injection at Karanj, designed to boost recovered oil reserves by 1 billion barrels.

At other fields, EOR programs will require sizeable amounts of natural gas, infrastructure development, and financing. For example, gas injection programs at the 31-billion barrel (in-place), 150,000-bbl/d Agha Jari field, while leading to an increase in recoverable reserves of 4-5 billion barrels, could require 15 Tcf of gas during the field's remaining life. Gas-related EOR programs at Agha Jari, as well as at the Binak, Kupal, and Ramshahr fields, are dependent upon development of Iran's non-associated gas reserves in the South Pars and North Pars fields in the Persian Gulf. Independent sources estimate that NIOC's gas injection programs will require 100 Tcf.

Although NIOC has run into difficulties in implementing EOR programs at some of the fields mentioned above, it has been successful in many other cases. One example is NIOC's development work at Gachsaran, which contains in-place reserves of 53 billion barrels. The field currently has a gas injection capacity of 1.5 billion cubic feet per day (Bcf/d), or almost 15% more than the field's present associated gas production. After a new, untapped, oil-bearing structure underlying existing producing formations is brought online, NIOC anticipates that production will be ramped up from 600,000 bbl/d to 750,000 bbl/d.

Oil		Natural Gas
Oil...	Production...	Natural gas...
Onshore developments...	offshore developments...	New field developments projects...
Terminals...	Refining...	Natural gas exports...