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Iran Press TV

Iran awards deal for development of South Pars gas field

Iran Press TV

Sat Aug 10, 2019 05:05PM

An Iranian oil and gas company has won a contract for work on development plans at South Pars gas field, the world's largest which is located in the Persian Gulf.

The Petropars Operation & Management Company (POMC) said on Saturday that Iranian authorities had awarded it with a deal to develop phase 14 of the South Pars, including work on launch, start-up, operation, performance test and first production.

The contract, reported on by the ILNA agency, comes amid US sanctions on Iran's oil and gas industry which has affected the government's ability to engage with major international companies to develop its energy sector.

Iran's development plans for South Pars hit a snag last summer when France's Total withdrew from a contract to expand phase 11 of the gas field under increasing pressure from the United States.

Iran has managed to expand other phases of the gas field, which is shared with neighboring Qatar, on its own, putting billions of dollars in investment and using the expertise existing inside the country.

Iran's oil ministry warned China National Petroleum Corp, the current dominant investor in phase 11 of South Pars, in early July that it should either begin work at the site or allow other companies to start development plans.

The POMC has carried out similar projects in phase 12 and phase 19 of South Pars. Its assignment to work in phase 14 comes less than a month after a locally-built super-size drilling rig was installed at the site of project by Iranian technicians and workers.

The installation of the 2,400-ton platform was meant to accelerate the end of development operations at the offshore section of the phase 14, a project which is expected to increase Iran's daily gas output by two billion cubic feet (over 56 million cubic meters).

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