Iran has commenced oil production from North Yaran oilfield with an output of 30,000 barrels per day with the 10 wells drilled so far, the project's development manager was quoted as saying in a report.

Iran's priority is to develop jointly-owned oil and gas fields which are being dried out by Iran's neighbours, including Yaran, Azadegan and Yadavaran, Arash Baqerzadeh was quoted in the Iran Daily report, which cited Tasnim News Agency.

Iran has five joint fields with Iraq, which include North Azadegan, South Azadegan, North Yaran, South Yaran and Yadavaran, the report said.

Azadegan is the world's third largest oilfield with in-place reserves of about 33.2 billion barrels and proven reserves of about 6 billion barrels. South Azadegan holds in-situ reserves of over 25 billion barrels, of which 2 billion are recoverable, according to the report.