Iran’s South Pars gas field phase 12 needs $8 billion of investment

Business Materials 23 December 2013 11:05 (UTC +04:00)

Baku, Azerbaijan, Dec. 23
By Rahim Zamanov - Trend:

The development project manager of South Pars gas field's phase 12, Rasoul Fallahnejad, said some $8 billion should be invested in the phase in order to come on stream completely, the Fars News Agency reported on Dec. 23.

"Once the phase is completed, the country will earn $11 billion from the phase," he added.

Fallahnejad said on Dec. 21 that as of February the phase will be ready to pump natural gas to the national network.

"Some 25 million cubic meters of natural gas will be fed to onshore refineries by the end of the week," he added, IRNA News Agency reported.

Deputy Director of Iranian Offshore Engineering Construction Company Amir Saeed Najafi said on Oct. 27 that the income from each standard phase of South Pars gas field will reach $8.5 billion.

"By inauguration of each phase, Iran earns $11.5 million daily," the IRNA News Agency quoted Najafi as saying.

He went on to note that Iran needs to invest $400 million to complete phases 12,15,16, 17, and 18.

The Managing Director of National Iranian Oil Company (NIOC) Roknoddi Javadi said on Oct. 23 that once the remaining 14 phases of South Pars gas field come on stream Iran's oil revenues would be raised by $100 million per day.

"So time is a crucial issue in development of the remaining phases of the giant gas field," the IRNA News Agency quoted Javadi as saying.

"Iran needs to invest $20 to 25 million in the project, so if we want all the phases to come on stream in the next 24 months, some one million dollars needs to be invested in the development project every month," he explained.

"Each phase's revenues equal to $2.5 billion annually," Javadi added.

He went on to note that the country loses large amounts of money by each day of delay.

Iranian Oil Minister Bijan Namdar Zanganeh previously said that the oil ministry's priority in developing South Pars gas field's phases is the older ones.

The country holds the world's third-largest proven oil reserves and the second-largest natural gas reserves.

The country's total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.