Iran plans to assign SP's land section to private sector

Oil&Gas Materials 27 May 2011 12:23 (UTC +04:00)

Azerbaijan , Baku, May 27 /Trend/

The assignment of South Pars gas and oil field's onshore part to private sector will enable to feed the refineries and petrochemical plants, IRNA reported quoting Managing Director of National Petrochemical Company Abdolhossein Bayat.

Bayat said apart from four major companies of oil ministry, other activities can be assigned to private sector.

''The private sector can cooperate in the form of consortium and provide petrochemical and refinery feed and create production chain in land section,'' he added.

More than 50 percent of the private investment is estimated to reimburse.

"There is no legislation to prevent private sector from working with oil industries but the bureaucracy make the declension process longer," he added.

South Pars oil and gas field is one of the largest in the world and is expected to produce up to $130 billion in revenues per year.

The South Pars oil and gas field covers an area of 3,700 square kilometers and is located in 3,000 meters below the seabed.

The Iranian South Pars field is the northern extension of Qatar's giant North Field. The Iranian side accounts for 10 percent of the world's and 60 percent of Iran's total gas reserves. Iran's portion of the field contains an estimated of 436 trillion cubic feet of gas.