TEHRAN - The managing director of Petropars Company, which is in charge of developing phase 11 of Iran’s South Pars gas field in the Persian Gulf, has announced the implementation of two new contracts as of December 22, 2021, to accelerate the development of the mentioned phase, Shana reported.

According to Hamid-Reza Masoudi, the mentioned deals are concerned with the construction of an off-shore pipeline as well as the installation of the phase’s SDP11B platform.

“The engineering, procurement and implementation activities corresponding to these two contracts have officially started since the beginning of the current [Iranian calendar] month [December 22, 2021]),” Masoudi said.

In order to transfer and install the mentioned platform to position 11B in the shortest possible time, after the necessary studies we awarded the project to an Iranian company in the form of an Engineering, Procurement, Construction and Installation (EPCI) contract, he said.

The required items and equipment for the project have been ordered or purchased by Petropars based on the Long Lead Items (LLI) procurement method so that the project can be completed as scheduled, the official added.

Mentioning the offshore pipeline project, Masoudi said: “The gas and gas condensate produced in the first phase of the project which is expected to be about 11 million cubic meters per day will be sent to onshore processing facilities in Pars 2 region through this pipeline.”

When fully developed, the South Pars phase 11 project will have a production capacity of two billion cubic feet per day or 370,000 barrels of oil equivalent per day. The produced gas will be fed into Iran's gas network.

Iran had previously awarded the development of phase 11 project to a consortium comprised of France’s Total, China National Petroleum Corporation (CNPC), and Petropars which is a subsidiary of the National Iranian Oil Company (NIOC), however Total and CNPCI pulled out of the project in 2019 due to the U.S. sanctions.

Currently, Petropars is developing the phase 11 project after its partners left the contract.

The drilling operation for the first well of mentioned phase was officially started in December 2020. In the early production stage, the output of this phase will reach 500 million cubic feet (equivalent to 14 million cubic meters) per day.

South Pars is the world’s largest gas field, covering an area of 3,700 square kilometers of Iran’s territorial waters.

The giant field 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.

EF/MA