The narrative of Dana Energy stepping into the Exploration and Production league in Iran as a private company has been characterized by unique twists and turns, evolving into a significant chapter in our history.
Having established a reputable name in the upstream sector of the industry since the early 2000s, it was time for us to set our sights on new heights and peaks. To achieve this, we embarked on an extensive R&D process to become part of the Exploration and Production landscape in Iran. This process ultimately proved to be a strategic turning point for Dana Energy.
Various measures were implemented to bring this strategic vision to life. In 2010, the initiation of technical studies for the third development phase of the Darkhouin oil field resulted in the submission of a technical plan to the National Iranian Oil Company. Following approval, contract negotiations ensued, leading to the finalization of a mutual agreement.
In the following year, we presented an early development and production plan for the recently discovered Sohrab oil field to NIOC. Once it received approval, the plan sprung into action. Following this progress, in 2012, the development plan for the Changouleh shared field gained approval from NIOC and was promptly executed. Skillful negotiations in both contractual and financial aspects paved the way for the board of directors at NIOC to grant their stamp of approval.
In addition to the measures taken, the organic growth of the company, both financially and in terms of human capital—something we consistently pursue and align ourselves with—empowered us to establish and introduce a new business segment in 2014: Exploration and Production.
This brand-new chapter at Dana Energy coincided with the introduction of a new generation of contracts by the Ministry of Petroleum in the same year (IPC contracts), offering a significant opportunity for Iranian E&P companies alongside their international counterparts. Amongst these changes and developments in the E&P landscape of the country, we successfully secured a position among the top three qualified E&P companies.
Owing to our competitive advantages as a fully privately held company, along with our dedicated attention to organizational development and competency, and coupled with our extensive experience in Iranian fields, we found great success in collaborating with international companies. Our partnership with ZN-Vostok in the field development of Aban and West Paydar fields in February 2018, marked our very first international IPC contract. In this project, Dana Energy, for the first time as a non-operator, focused on maintaining and developing two fields at the Iran-Iraq border in the Ilam province. The projected investment for this project is estimated at 740 million dollars, with a targeted production of 67 million barrels of oil for its 10-year duration.
Following the withdrawal of foreign companies from Iran and a shift in strategy by the petroleum ministry, new opportunities emerged for Iranian companies. Relying on our years of experience, industry insight, and accumulated wisdom, we successfully secured a historic contract in 2020; The Sohrab field development project. This project poses several challenges, notably the distinctive environmental conditions of the field. To address this, we have committed to utilizing modern drilling technologies as a testament to our deep-rooted commitment to the future of our planet and to safeguard the unique landscape of the environment. Sohrab project, this time with Dana Energy as the operator for 20 years, is set to become our longest-running project. It represents the realization of a long-cherished dream that has finally come to fruition and will undoubtedly stand as a defining milestone in the history of Dana Energy.
In November 2022, the Sohrab project officially kicked off, and by February 2024, earlier than the estimated timeline, we achieved our first targeted production. This is indeed a defining and decisive moment for Dana Energy as an already established brand in the oil and gas sector. It represents a new horizon that we approach with complete confidence in our capabilities, fueled by a constant desire for ongoing learning and staying ahead.