As of 1998, Iran produced about 500,000 bbl/d of crude oil from eight operational offshore fields. Since 1993, NIOC's extensive development and refurbishment efforts have boosted offshore capacity by about 150,000-200,000 bbl/d. The Doroud 1&2 (146,000 bbl/d), Salman, Abuzar, Forozan, and Sirri C&D fields comprise the bulk of Iran's offshore output, all of which is exported. Iran plans extensive development of existing offshore fields and hopes to raise its offshore production capacity to 1 million bbl/d by 2000. Development of new offshore Persian Gulf and Caspian Sea oil fields could require investment of $8-$10 billion.

The 105-million barrel Balal field was discovered in the 1970s by an ARCO/Murphy consortium, but was nationalized along with the rest of Iran's offshore oil industry during the 1979 Islamic Revolution. Balal was never developed even though an oil pipeline connecting the field to the Lavan Island export terminal was laid. Balal contains two reservoirs: a larger, shallow formation ("Arab/Hith") holding 42° API crude; and a smaller, underlying zone ("Khatia") holding heavier 28° API oil. As mentioned above, Canada's Bow Valley Energy Ltd. is now conducting detailed engineering work, including a 3-D seismic survey, on the Balal field. Initial production is scheduled to begin in 1999 at 12,000-15,000 bbl/d, plateau at 40,000 bbl/d, and last around 15 years. Balal likely will require extensive water injection and other secondary recovery methods, especially in later years.

Soroush is located about 50 miles west of Kharg Island and contains estimated recoverable reserves of 400 million barrels. The field contains three reservoirs, two of which hold heavy 19° API oil. It received severe damage early in the Iran-Iraq War, and its 25,000 bbl/d production capacity has been shut-in since 1979. NIOC's $200-million development plan includes replacement of a 2.4-million barrel floating production, storage, and off-loading vessel (FPSO) and refurbishment of the field's main production platform and eight well protector platforms. Italy's Edison SpA is bidding for a contract to develop one oil well in the Soroush field, which would increase the well's capacity from 60,000 bbl/d to 100,000 bbl/d.

NIOC also would like to develop five oil and gas fields in the Hormuz region (Henjam A (HA), HB, HC, HD, and HE), the A field near Lavan Island, the Esfandir field near Kharg Island, and two structures near the South Pars gas field. According to NIOC, the five Henjam fields hold an estimated 400 million barrels of oil and have a production potential of 80,000 bbl/d.

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