TEHRAN - Managing director of Pars Oil and Gas Company (POGC), which is in charge of developing Iran’s giant South Pars gas field, said Total is completely following its commitment regarding its deal with Iran and the company’s activities are on schedule.

Speaking in a ceremony on the occasion of the company’s 20th anniversary on Monday, Mohammad Meshkinfam further noted that even if the French company leaves the deal due to U.S. sanctions, China National Petroleum Corporation (CNPC) will take its place and it won’t affect the project at all.

In July 2016, Iran signed a deal with a consortium of companies comprising France’s Total, CNPC and Iran’s Petropars for development of phase 11 of its South Pars gas field. 

Early production of 4 new phases to start

Elsewhere in his remarks the official announced that early production in phases 13, 22, 23 and 24 of the field (in the Persian Gulf) will be started by the end of the current Iranian calendar year (March 20, 2018).

“Development phases of Iran’s South Pars gas field will be completed within two years,” he added.

Meshkinfam said 85 percent of the phases are complete so far and implementation of the rest 15 percent will be finished by the next two years.

South Pars daily gas production at 550mcm

The director also mentioned the current level of gas production in the South Pars field saying that, “the field currently has a daily production capacity of 570 million cubic meters (mcm) and we are producing 550 mcm of gas at the moment.”

The official also touched upon the oil production from the field’s oil layers saying “Oil production from South Pars oil layer is also at 25,000 barrels per day (bpd) and we plan to increase the figure to 150,000 bpd in the near future.” 

Signing 2nd IPC deal expected in 2 months

Asked about the oil layer development plan, Meshkinfam noted that Danish conglomerate Maersk Group is in serious talks with National Iranian Oil Company (NOIC) for development of South Pars gas field’s oil layer and the two parts will probably reach to an agreement within two months.

“The country’s second IPC-based deal will most probably be with Maersk for the development of South Pars oil layer,” Meshkinfam said.

The official further put the total investment made in South Pars field at $72 billion of which near 21 percent or something about $15 billion has been supplied by foreign investors.

South Pars, which Iran shared with Qatar in the Persian Gulf, is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.

The field is divided into 24 standard phases of development in the first stage. Most of the phases are fully operational at the moment.

Established in 1998, POGC, a subsidiary of NIOC, is in charge of the development projects of South Pars gas field.

EF/MA