Iran: New Drilling Starts at South Pars Gas Field. Investments to Reach $11 bln

By joining the second drilling rig to the south Pars gas field region, drilling operations started in the second position at the South Pars gas field phases 17 and 18.

According to a report by Fars News Agency, initial production from the phases 17 and 18 will be started before the end of next Iranian calendar year on 20 March 2012. The drilling operation began by Iranian contractors. During the operations, Iranaian contractors plan to drill eleven new wells.

This report showing 37 percent progress in drilling operations in the phases 17 and 18 amid drilling 16 thousand meters wells over the first step. Newly joined drilling rig is a sophisticated one so that it is predicted to help to progress in drilling that in turn can bring about gas production from the first wells in November 2011.

Based on a report by POGC Planning and control Department, engineering and purchasing of the related gas pipelines have progressed by 70 percent and setting up of the onshore installations by 58 percent.

Iran’s ministry of petroleum has set starting early production from the under construction phases of the South Pars gas field phases 15, 16,17 and 18 as its priority in the process of the South Pars gas field development.

A report on the progress of the executive operations by Iranian contractor shows that by launching offshore and onshore installations of the South Pars phases 17 and 18, initial gas production will come on stream next year.

Phases 17 and 18 of the South Pars gas field are nearest to the neighboring country Qatar border in the Persian Gulf waters.

Meanwhile by arriving two ships carrying essential equipments into the Assaluyeh Port, purchasing and providing the needed goods have progressed considerably.

South Pars Gas Field Investment Reaching $11 Billion This Year

Nine billion dollars have been invested at South Pars gas field since the beginning of the current Iranian calendar year (started March 21 2010), Managing director of the Pars Oil and Gas Company (POGC), Mr. Souri announced.

According to the report of the public relations of the NIGC, he said that total investment for this year would increase to $11 billion.

Speaking during a visit by the Universities Faction of Parliament to the South Pars gas field projects on Monday, Mr. Souri noted that absorption of financial resources has been unprecedented when compared with recent years.

Referring to development of shared oil and gas fields specially South Pars gas field as the top priority of Iran’s ministry of petroleum, he expressed hope that members of the parliament pay special attention to development of the remaining phases of South Pars gas field through allocating financial resources to the region.

Emphasizing on the approach of using domestically made goods and equipments, he noted that currently 68 percent of the needed goods of the South Pars gas field projects are being supplied by domestic manufacturers.

[mappress]

Source:NIGC, February  23, 2011