Iran has increased crude oil production by 38,000 barrels per day (bpd) at its giant South Azadegan field, a significant step in its long-running campaign to develop its vast hydrocarbon resources using domestic capital and technology.

Hamidreza Taghavi, head of the state-owned contractor Petropars, told state media that the output boost was achieved over the past 10 months through the drilling of 17 new wells. He noted that the operation successfully targeted multiple reservoir layers, with domestic teams managing the complex work. “The highest daily production rate came from wells in the Fahliyan layer, averaging 4,800 barrels per day,” Taghavi said.

The project underscores Tehran’s strategic push for industrial self-sufficiency, a policy honed under years of international sanctions. In a key move, Petropars has tendered for 50 electric submersible pumps (ESPs) to be procured from Iranian manufacturers, using technology transferred from foreign partners. Taghavi said these actions “reflect Petropars’ long-term commitment to advancing Iran’s oil industry and supporting the Ministry of Oil’s strategic policies.”

The South Azadegan field, which Iran shares with neighbouring Iraq, is a central part of the country’s production strategy. It is the largest of the West Karoun cluster of fields, which collectively hold an estimated 67bn barrels of oil in place. The recent production increase is a tangible result of a $7bn investment plan announced in mid-2022, funded by a consortium of local banks and companies, which aims to raise the Azadegan field’s total capacity from 215,000 bpd to 600,000 bpd.

Petropars is the general contractor for the first development phase of the field, which Taghavi stated was being implemented “with seriousness, transparency, and speed.” Working under the supervision of the Petroleum Engineering and Development Co. (PEDEC), the project relies on several domestic drilling contractors and is on track for completion by September 2025. The progress provides a boost to Iran’s efforts to maintain and increase its oil output capacity, a critical component of its national economy.

PEDEC oversees the development of the West Karoun oilfields, which includes several large oilfields, namely Yaran, Yadavaran, Darkhoein, and Azadegan. These collectively hold an estimated 67bn barrels of oil, with current production at in excess of 420,000 bpd.