The Ministry of Petroleum of the Islamic Republic of Iran today confirmed a major hydrocarbon discovery in the onshore Pazan field, located in southern Fars Province near the border with Bushehr, that could significantly bolster the country’s energy portfolio and ease pressure on domestic supply constraints.

Oil Minister Mohsen Paknejad described the find as one of the most consequential in recent years, noting that exploratory drilling has revealed approximately 10 trillion cubic feet (Tcf) of natural gas in place, with an estimated recoverable volume of about 7 Tcf assuming a 70 percent recovery rate. In a first for the site, the exploration crew also encountered a horizontal reservoir layer containing an estimated 200 million barrels of crude oil, raising the possibility that further development will expand the oil component.

The discovery marks the resumption of activity at Pazan after an eight-year hiatus in exploration there. A development contract has already been awarded, and the ministry anticipates that initial production could begin within 40 months, putting first output in late 2028 or early 2029.

Minister Paknejad emphasized that the Pazan find could play an important role in offsetting Iran’s persistent energy supply imbalances, especially during peak demand periods when domestic consumption outpaces production. He further noted that the discovery comes amid ongoing challenges stemming from aging energy infrastructure and sanctions-related investment constraints.

Iran already holds one of the world’s largest conventional natural gas reserves, and the Pazan discovery is expected to reinforce its strategic energy standing. The government projects that, once brought online, the field will help reduce reliance on gas imports (or alternative supplies) and improve stability in the domestic gas market.

The Ministry of Petroleum will oversee further appraisal work, finalize engineering designs, and engage domestic and international partners in the development phase.

KeyFacts Energy: Discovery news