South Pars 6-8 onshore signed and sealed

03 June 2003
A Japanese-led consortium signed on 17 May the contract to carry out the onshore engineering, procurement and construction (EPC) package for the South Pars 6-8 gas development programme. The client for the estimated $1,200 million contract is Pars Oil & Gas Company (POGC), the National Iranian Oil Company (NIOC)subsidiary responsible for developing South Pars (MEED 2:5:03; 7:2:03).

Japan's Toyo Engineering Corporation, the consortium leader, and state-owned Industrial Development & Renovation Organisation (IDRO)hold 28 per cent of the venture each, while Japan's JGC Corporationand South Korea's Daelim Industrial Company both have a 23 per cent stake. The project is to be financed by the Jersey-registered Naftiran Investment Company (Nico), an NIOC subsidiary, and Japan's Mitsui & Company.

Three other consortia submitted bids for the project in September. The groups were led by Japan's Chiyoda Corporation, South Korea's Samsung Corporationand Sharjah-based Petrofac International.

The contract involves the construction of a new gas processing plant, with throughput capacity of 3,000 million cubic feet a day (cf/d), offsites and utilities. The plant will produce 2,800 million cf/d of dry sour gas, 3.7 million tonnes a day of liquefied petroleum gas (LPG) and 122,000 barrels a day of condensates.

The offshore portion of South Pars phases 6-8 is being developed by Norway's Statoilin partnership with the local Petropars. Sadraand Iran Shipbuilding & Offshore Industries Company (ISOICO), both local, are the offshore contractors.

South Pars phases 6-8 will supply gas to the IGAT-5 pipeline, which will ferry it to the Aghajari oil field for reinjection.

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