Iran plans to boost South Pars gas production by 100 mcm

Oil&Gas Materials 26 July 2014 13:05 (UTC +04:00)

Baku, Azerbaijan, July 26

By Fatih Karimov - Trend:

Iran plans to boost gas production from its South Pars field by 100 million cubic meters, Iranian Oil Minister Bijan Namdar Zanganeh said.

There is the hope that the gas field's output will be increased by 100mcm by the end of the current year, he added, the Shana news agency reported on July 26.

The current Iranian year began on March 21.

The prioritized phases, namely the phases 12, 15, 16, 17, and 18 of the gas field, will come on stream in the current year, he added.

Iran is currently producing 300mcm per day of gas from the South Pars.

Deputy Director of Iranian Offshore Engineering Construction Company Amir Saeed Najafi said on October 27, 2013, 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 each day," 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.

Once the remaining 14 phases of the South Pars gas field come on stream, Iran's oil revenues would be raised by $100 million per day, according to Iran's sources.

So, time is a crucial issue in the development of the remaining phases of the giant gas field.

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, one million dollars should be invested in the development project each month.

Each phase's revenue is equal to $2.5 billion annually.