Iran approaches contractors over South Pars drilling work

01 December 2009

Project covers offshore oil and gas wells

State-owned energy firm Oil Industries Engineering & Construction (OIEC) has asked contractors to prequalify for a drilling deal covering offshore oil and gas wells on phase 20 of the giant South Pars gas field in Iran.

The firm, a subsidiary of National Iranian Oil Company (NIOC), says the work includes drilling a test well and 10 development wells on an engineering, procurement and drilling basis, according to state-run energy news agency Shana.

Phase 20 of South Pars will produce 2 billion cubic feet a day (cf/d) of gas, 75 million cf/d of ethane and 80,000 barrels a day of condensate.

In May, NIOC awarded a deal to OIEC to design and develop phases 20 and 21 of the South Pars field, with a total investment of $5.5bn. New refineries to process the gas will also be built near Kangan Port in the southwest province of Bushehr.

NIOC appears to have snubbed the UK/Dutch Shell Group after the oil major said in May 2008 it was considering developing the two phases of the gas field.

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.