More South Pars work goes to bid

15 February 2002

The local Petropars, an affiliate of the National Iranian Oil Company, has released the first engineering, procurement and construction (EPC) package on phases 6,7 and 8 of the South Pars gas development scheme. The contract covers the supply and installation of three wellhead jackets. A further two EPC packages are due be issued for bid by mid 2002. Package 2 will cover topsides, while package 3 is for pipelines. The total value of the three packages is estimated at more than $1,000 million (MEED 16:2:01).

Petropars has the buy-back development contracts for the estimated $2,650 million scheme. Each phase is set to produce 1,000 million cubic feet a day of gas and 40,000 barrels a day of condensate.

The UK's Enterprise Oilin late 2000 took a 20 per cent stake in the development (MEED 5:1:01). However, Enterprise is now re-evaluating its position in the project, citing unattractive contract terms. Norway's Statoilhas expressed an interest in taking a major stake in the project, but no agreement has so far been concluded.

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