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Iranian SP's Phases 9&10 losses at $6 billion

Oil&Gas Materials 6 July 2011 12:17
Iranian SP's Phases 9&10 losses at $6 billion

Azerbaijan, Baku, July 6/Trend/

South Pars inaugurated Phases 9 and 10 early, costing over $6 billion in losses while 75 percent of the wells are unable to produce gas, Mehr News Agency reported.

After 845 days South Pars Phases 9 and 10 failed to produce natural gas from joint reserves with Qatar. Pars Oil and Gas Company reported that wells in Phase 9 will produce 18 million cubic meters of natural gas per day. However, 16 gas wells remain unused.

The $5 billion offshore refineries of Phase 9 and 10 were launched in 2008.

Oil ministry officials promised to inaugurate Phase 9 and 10 wells in September 2010. However, three wells began operation in November 2010 while the other four were not lunched until mid April 2011.

Iran considers Phases 9 and 10 significant projects in South Pars oil and gas field development and plans to produce 50 million cubic meters of natural gas for the main network. Iran plans to extract 80,000 barrels of condensate per day for export and produce one million tons ethane for petrochemical purposes and more than one million tons of natural gas.

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

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

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