Iran has uncovered significant new oil and gas reserves in the Pazan field, located in southern Fars Province and stretching into northern Bushehr, according to a report by Mehr News Agency.
The discovery, estimated at 10 trillion cubic feet (tcf) of gas, marks one of the country’s most substantial energy finds in recent years and could reshape its long-term production outlook.
The Pazan field, situated about 21 kilometres from the city of Jam, has seen renewed exploration efforts after an eight-year hiatus.
Iran’s Oil Minister, Mohsen Paknejad, confirmed the completion of drilling on a second exploratory well, calling it a “key breakthrough in revitalising the site.” He further noted that a development contract for the field has already been awarded, signaling fast-tracked plans for production.
“The Pazan field’s new 10 trillion cubic feet of gas — assuming a 70% recovery factor — could yield about 7 trillion cubic feet, equivalent to 7,000 days of production from one phase of the South Pars gas field,” Paknejad said.
Production from the Pazan field is expected to begin within 40 months, reinforcing Iran’s position as a leading energy producer despite ongoing international sanctions. The government sees the new reserves as a strategic buffer for energy security and economic stability.
However, experts caution that Iran’s ability to fully exploit these reserves will depend heavily on infrastructure upgrades and investment. Reza Padidar, head of the Sustainable Development Commission at the Iran Chamber of Commerce, emphasized the scale of Iran’s potential:
“Iran is currently the world’s third-largest gas producer and the second-largest in reserves. According to recent data from energy research institutes, Iran’s gas consumption is twice that of the European Union.”
Despite this vast capacity, energy shortages remain a growing concern as domestic demand outpaces supply. The Iranian Union of Exporters of Oil, Gas and Petrochemical Products recently warned that production constraints have intensified since late 2024, exacerbated by renewed UN sanctions from France, Germany, and the UK.
Still, Iran is pressing forward. The Iranian Offshore Oil Company has signed new agreements to acquire advanced offshore drilling rigs, reflecting the country’s determination to expand production capacity and sustain its energy independence in the face of external pressure.
