Iran to fine contractors over delay of South Pars development

Oil&Gas Materials 3 October 2011 13:38 (UTC +04:00)

Azerbaijan, Baku, Oct. 3 /Trend A. Qurbanova/

Iran 's Oil Minister Rostam Ghasemi warned contractors in four phases of South Pars oil and gas field that the ministry would fine the contractors if they fail to complete the development by mid-December, Pananews reported quoting Oil Minister Rostam Ghasemi as saying.

According to the National Iranian Oil Company, the early gas production from Phase 15 to 18 should start in mid-December otherwise the contractors will be fined.

The contractors in Phases 17 and 18 have recently requested additional time to operate, but the oil minister rejected their bid.

After 50 months the development of Phases 15 and 16 completed by 70 percent, while Phases 17 and 18 have progressed by 60 percent.

Ghasemi said the ministry should prepare oil projects in the form of new packages to increase early production from the joint field and prevent future delays.

The world's largest oil and gas field South Pars is developed jointly by Iran and Qatar. Iran is expected to produce up to $130 billion in revenues annually.

The Iranian share, which was divided into 28 phases, has about 14 trillion cubic meters of gas (about 8 percent of total world reserves) and more than 18 billion barrels of liquefied natural gas resources.