TEHRAN – Iran signed a $17 billion contract on Saturday to implement a pressure-boosting project at the South Pars gas field, with President Masoud Pezeshkian and senior oil industry officials in attendance.

The agreement was signed between the National Iranian Oil Company (NIOC) and domestic firms Petropars, Khatam al-Anbiya Construction Headquarters, Oil Industries’ Engineering and Construction (OIEC), and MAPNA Group.

The project aims to compensate for pressure declines, maintain maximum gas production, reduce imbalances in gas and gasoline supply, and prevent gas migration to Qatar from the shared field. With the signing of these contracts, the project has officially entered its operational phase.

The $17 billion project is expected to enhance Iran’s energy security and create 17,000 direct and 50,000 indirect jobs.

According to the project plan, the South Pars field will be divided into seven pressure-boosting hubs, each requiring the construction of approximately 60,000 tons of structures. In total, 420,000 tons of infrastructure will be built, with 70 percent of the necessary materials sourced domestically.

With this agreement, Iran’s oil and gas sector enters a new phase of sustainable development in the world’s largest gas field, ensuring long-term energy security and supporting economic growth.

Oil Minister Mohsen Paknejad, speaking at the signing ceremony, highlighted the strategic importance of the project. He noted that after seven months under the new administration, Iran has taken a major step toward realizing its long-standing goal of implementing a pressure-boosting system at the South Pars field.

He added that, under Iran’s Seventh Development Plan, the country aims to increase raw gas production to 1.34 billion cubic meters per day by the end of the program. Achieving this target requires both the development of new gas fields and maintenance projects to prevent production decline.

Experts estimate that reaching this production goal will require a total investment of $75 billion. Of this, $53 billion will be allocated for new gas field developments, while $22 billion will be dedicated to maintaining production capacity, including the South Pars pressure-boosting project.

Paknejad emphasized that to reach the 1.34 billion cubic meters per day target within the next four years, Iran will need to invest approximately $19 billion annually. Securing this investment will require precise planning and the optimal use of financial and monetary resources.

EF/