Iran: South Pars to Absorb as Much as USD 30 Bln, Says Official

The South Pars gas field will absorb as much as 30 billion dollars this Iranian calendar year to March 2014, senior Iranian energy officials announced.

Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qalebani made the remarks, and added that to speed up development of the field’s phases, foreign exchange and rial denominated investments in the South Pars gas field will rise to an equivalent of 30 billion dollars.

“Fortunately adequate resources have been allocated for the development of South Pars this year so that the development plans of the phases will go ahead on schedule,” he said.

“By the end of this Iranian calendar year, the country’s production capacity of gas will rise by 100 mcm/d, bulk of it after startup of South Pars phases 12, 15 and 16,” he added.

Elsewhere in his remarks, the NIOC chief noted that domestic manufacturers play an important role in the procurement of oil industry equipment and in some sectors they account for providing more than 70 percent of equipment.

Alluding to drilling operations in South Pars, NIOC’s head said: “After completion of drilling of 7 oil wells, 24.000 meters in total, extracting oil from the oil layer of the gas field will start in the near future.
 
“These wells have been drilled with the aim of producing 35 thousand barrels of oil per day”, NIOC official noted.

He went on to say that these oil wells have been drilled by taking use of smart technology for the first time in the country.

“In another layer of the gas field which exploration operations is underway, new wells will be drilled,” Qalebani concluded.

[mappress]
LNG World News Staff, June 03, 2013; Image: POGC