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Iran announces discovery of major new oil field

NICOSIA [MENL] -- Iranian Oil Minister Bijan Namdar-Zangheneh announced a major oil find Tuesday. He described it as the "most important in 35 years."

"The Azadegan oil field, the most important discovered in Iran in 35 years, has reserves of around 26 billion barrels and is located close to Ahwaz" in southwestern Iran, state radio quoted the minister as saying.

The oil field covers an area of 520 square kilometres [208 square miles], he said.

"The field adds 100 billion dollars to Iran's wealth," the minister said.

Oil Minister Bijan Zanganeh said the oilfield in the prolific southwest Khuzestan province has the potential to produce up to 400,000 barrels a day. Drilling will begin during the next Iranian year, which starts on March 20th.

Iran's proven oil reserves amount to 90 billion barrels, the third largest in the world. It is the second biggest producer in the Organization of Petroleum Exporting Countries, with a current output of 3.7 million barrels a day, of which 2.4 million go for export.