Ahvaz-Agha Jari Oil Fields

The Ahvaz and Agha Jari oil fields in Khuzestan province form the central cluster of Iran’s onshore oil production. The Ahvaz field is one of the largest individual oil fields ever discovered, with recoverable reserves estimated in the tens of billions of barrels. Together with Agha Jari, discovered in 1938, they have produced the majority of Iran’s cumulative oil output since commercial production began.

Geography

History

Agha Jari was discovered in 1938 by the Anglo-Persian Oil Company and became famous as the site where Mohammad Mosaddegh’s nationalisation crisis was centred. The Ahvaz field was identified in 1958 and developed rapidly. Both fields were critical national infrastructure during the Iran-Iraq War, when they were dangerously close to Iraqi military operations in Khuzestan. They survived the war and continued producing.

Present Day

Both fields are operated by the National Iranian South Oil Company. Like all of Iran’s mature giant fields, they require sophisticated reservoir management including gas reinjection to maintain pressure. Investment in enhanced recovery has been constrained by sanctions. China National Petroleum Corporation has been involved in development contracts at Ahvaz, making it a key site in the Iran-China energy relationship.