Petro Iran wins $1.23bn South Pars drilling and construction deal

05 May 2013

Pars Oil & Gas Company awards total of six contracts on development of giant offshore gas field

Iran’s Pars Oil & Gas Company (POGC) has signed six contracts with domestic companies for oil services and construction on the offshore South Pars gas field, the state-owned energy group said.

Petro Iran Company was awarded a contract worth $1.23bn to drill 11 offshore wells and construct an offshore platform, flare and 110 kilometres of pipeline.

At the same time, state-owned National Iranian Drilling Company (NIDC) won a $140m contract to drill four wells in phase one of South Pars. This drilling programme is expected to increase the output by 400 million cubic feet a day (cf/d).

Deep Sea Technology Company signed an agreement to explore the Gulf seabed for three years to find new hydrocarbons reserves.

Three other agreements on the South Pars field were signed for undisclosed sums.

Parsian Technology Company won a contract for the construction of drilling platforms and procurement of equipment.

Petroleum Designing and Construction Company, a subsidiary of National Iranian Oil Refining and Distribution Company (NIORDC), was awarded a contract for the completion of the flare for phase one, laying pipelines between other phases and the completion of oil storage facilities.

Finally, Imam Hussein University was contracted to design and manufacture equipment subjected to international sanctions, which is needed for the further development of South Pars.

South Pars is the world’s largest known gas field. Iran shares the field with Qatar, where it is known as the North Field or North Dome.

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