Groups take shape for South Pars 15-16

20 October 2003
Potential bidders on the South Pars phases 15-16 development are preparing consortia in preparation for the 8 December bid deadline. Pars Oil & Gas Company (POGC)has stipulated that each consortia must comprise at least three companies, including an engineering company, an international engineering, procurement and construction (EPC) contractor and a construction firm.

The UK office of Foster Wheelerand South Korea's Hyundai Heavy Industriesare in discussions with the local Petroparsto form one consortium. Petropars is also understood to be in discussions with Japan's Chiyoda Corporation. Paris-based Technipand its local engineering partner Narganare proposing to work with the local Oil Industries Engineering Company (OIEC). And Russia's Gazpromhas teamed up with the local Bunyad Mostazafon. Industry sources in Tehran say they are sceptical about the number of likely bidders for the project. Its large size is said to be a concern to some prequalifiers which are already heavily extended in Iran, while others have expressed concerns over balancing their local and US project work.

The invitation to bid (ITB), which was issued in mid-August, has a scope of works closely resembling that on South Pars phases 4-5. It will produce 50 million cubic metres a day (cm/d) of treated gas for domestic use, 1 million tonnes a year (t/y) of liquefied petroleum gas (LPG) for export, 80,000 barrels a day of condensates, also for export, and 1 million t/y of ethane for use in Iran's petrochemical projects. The project will be 85 per cent financed by buyers' credit.

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