Development costs double on South Pars project

26 August 2008
Oil development firm Petropars, a subsidiary of National Iranian Oil Company, has conceded that costs have doubled to $6bn on phases 6-8 of the giant South Pars gas field.

The firm says it expects to start production from the field by March 2009, after signing the original development deal in 2001 for an estimated $3bn (MEED 11:10:01).

Managing Director Gholamreza Manouchehri told Iran's official energy news agency Shana on 26 August that the platform for phase 6 would be completed by October and an international contractor has been selected to lay the third pipeline for phases 6-8.

Petropars originally hoped to produce 3 billion cubic feet a day of gas and 120,000-barrels-a-day of condensate. It has not given any recent update for these targets.

Most of the gas will be reinjected into depleted oil fields, principally Aghajari, through a 56-inch, 512-kilometre pipeline.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications