TEHRAN, July 11 (Xinhua) -- Iranian Persia Oil and Gas Industry Development Company signed a contract with National Iranian Oil Company (NIOC) on Saturday to undertake the development project of Yaran Oil Field in the southwest of the country, Tehran Times daily reported.

The contract targets additional cumulative production of about 39.5 million barrels over 10 years.

The direct investment in the project is estimated at 227 million U.S. dollars, while operating costs during the contract period are estimated to amount to 236 million U.S. dollars.

In the meantime, the contractor will provide all the necessary financial resources for the implementation of the project, according to the report.

Based on the deal, the contractor will drill six new wells, three in North Yaran and three in South Yaran, as well as a descriptive well and a water injection well.

The company will have to repair five existing wells and equip 27 wells with electrical submersible pumps (ESP).

It will carry out construction and upgrading of surface facilities, conducting research studies and designing new methods for Enhanced Oil Recovery (EOR).

Yaran is one of the five oil fields known as West Karoun oil fields which Iran shares with Iraq at Iran's southwestern region.

The field, which is divided into two parts namely North Yaran and South Yaran, lies 120 km west of Ahwaz, the capital city of the southwestern province of Khuzestan, on the borderline with Iraq. Enditem

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