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Iran may transfer onshore development of Phase 11 of South Pars to foreign contractors

Business Materials 31 October 2014 14:32 (UTC +04:00)

Baku, Azerbaijan, Oct.31

By Fatih Karimov - Trend:

The National Iranian Oil Company has decided to transfer the onshore development of Phase 11 of South Pars to foreign or domestic contractors.

Ali-Akbar Shabanpour, managing director of Pars Oil and Gas Company, which is tasked with the development of the South Pars field, said the development plan of the onshore section of phase 11 will be implemented ahead of the schedule and independent from the offshore section, Iran's Shana news agency reported on October 31.

The development of Phase 11 of the South Pars has been awarded to general contractor Petropars in a move that officially annuls Iran's 2009 deal with state-owned China National Petroleum Corp.

In July 2012, local agencies reported that China has pulled its staff from the construction site of the South Pars gas field, despite repeated ultimatums from the Iranian side to push the Chinese to move forward with the $5-billion work.

The oil ministry awarded CNPC the contract after Total and its team failed to commit to an agreement made in 2000 that envisaged a two-phased project to produce gas and build an LNG plant at Assaluyeh in southern Iran.

Phase 11 will produce 56 million cubic meters of natural gas, 80,000 barrels of gas condensates and 400 million tons of sulfur on a daily basis.

The South Pars gas field, divided into 28 phases, is located in the Persian Gulf on the common border between Iran and Qatar. The field is estimated to hold 14 trillion cubic meters of gas as well as 18 billion barrels of condensates.

The field covers an area of 9,700 square kilometers, 3,700 square kilometers of which lie in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers, better known as the North Dome, are located in Qatar's territorial waters.

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