Iran increases South Pars output by 800,000 barrels
The government of Iran is scheduled to begin implementing phases nine and 10 of the South Pars Gas Development Project, reported IRNA. Like previous development stages, the contracts for the two phases are buy-back in nature, where the foreign investor does not hold equity.
According to Iran Minister of Oil, Bijan Namdar Zanganeh, the two billion dollar phase development is expected to produce close 50 billion cubic meters of natural gas in addition to 80,000 barrels of gas condensate and 400 tons of sulfur daily.
The Minister failed to reveal the name of company carrying out the project, however France’s Technip and South Korea’s LG were supposedly in the running to cooperate on the project with the Iran Oil Industry and Engineering and Constructions Company.
The Assaluyeh region, where South Pars’ is located, is set to be developed into a major industrial district, in an effort to encourage investors to finance the oil production. So far, the government has invested $27 billion into the field, where 25,000 people are currently employed
The Pars field is shared by Iran and Qatar. Gas reserves in Iran’s share of the region are estimated at 464 trillion cubic feet. The field was discovered by Qatar in 1971 and by Iran in the 1980’s. The field’s first well was drilled last year with two more wells to come on stream in the near future. — (menareport.com)
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