Between 1999 and 2000, KEPCO teamed up with a consortium of Shell, Lasmo and Veba Oil to study the Iranian sector of Caspian Sea. South Caspian Study Group (SCSG) was established to conduct the relevant studies. The main achievement of this study group was its finding about hydrocarbon in Iran's sector.
An objective pursued by SCSG was to see if there was oil system in Iran's sector of Caspian Sea. During 22 months, 2D seismic testing was conducted on 10,000 kilometers. SCSG also studied data related to 26 wells drilled by Azerbaijan and Turkmenistan in Caspian Sea and compared the formations in the wells of those countries with those in the wells drilled in Iran. Moreover, geochemical studies on oil leaks and consistency between these leaks and source rocks in neighboring countries were among other activities of this study group. Following geological and geophysical studies, 86 geological structures were explored in Caspian Sea, 46 of which were in better conditions. Eight were finally selected to undergo comprehensive study for exploration and production. To that effect, drilling operations were started on one of these eight blocks in February 2009. The result was the discovery of Sardar-e-Jangal reservoir.