The first of six exploration wells drilled in Iran's Azadegan oil field has become operational at a rate of 3,000 barrels per day (bpd), a senior oil official was quoted as saying by the Oil Ministry's news Web site.

Iran has previously said it expected the six wells to eventually produce 20,000 bpd in the field, which was to have been developed by a Japanese firm until talks collapsed last year. Iran's total production is currently about 3.9 million bpd.

'Previously six oil exploration wells were drilled and, by carrying out some work, the first well at a depth of 2,770 metres and producing 3,000 barrels (per day) has been put into production,' said a senior drilling official at the National Iranian South Oil Company.

His remarks were carried by the Oil Ministry's SHANA news Web site.

 'Within the next four months, five more wells will become operational ... It is forecast that in three phases of this field, 300 oil wells will be drilled,' the official added.

Azadegan, located in the southwestern province of Khuzestan, is Iran's biggest oilfield. In-place reserves have been put at 26 billion barrels.

Japan's INPEX Holdings had been due to develop the field but talks collapsed in 2006, with the Japanese firm citing spiralling investment costs. INPEX retains a 10 per cent stake.

India's Essar Group said in March it was in talks with Iran to take on the field's development but results have not been announced yet.

Iran is the world's fourth-largest crude oil exporter and Azadegan was its biggest oil find in 30 years when it was announced in 1999.Reuters