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Iran requires investment for development of joint gas fields - MP

Oil&Gas Materials 18 September 2021 10:53 (UTC +04:00)
Iran requires investment for development of joint gas fields - MP

TEHRAN, Iran, Sep.18

Trend:

Iran has the capacity to develop joint gas fields but it requires financial resources and precise planning for attracting investment, said a member of Iranian Parliament, Trend reports citing ILNA.

Hossein Hosseinzadeh has indicated that the development of joint fields is important and has priority but there is a need for investment.

"There are 70 million barrels of floating liquid gas offshore and Iran has the production capacity of 4 million barrels but we do not have the capital," said the MP.

The official noted that at the moment South Pars gas field supplies 70 percent of the country's gas but it requires money to produce otherwise by 2025 the country has to import while it is considered the second country in the world with big current and on site gas reserves.

"Due to sanctions, Iran should use a special strategy for the development of joint fields. At the moment Oil Ministry is in debt and requires resources to pay debts and invest," Hosseinzadeh explained.

He indicated that the only way for the development of joint fields is barter, saying that drilling a well costs 10 million euros and the government could not afford the cost but the developer companies could barter gas production in return for the development of joint fields.

"Iran can sign long term contracts for development, exploration, and construction of refinery and export otherwise we have to borrow from national development fund to develop joint fields," Hosseinzadeh said.

South Pars gas field is one of the largest independent gas reservoirs in the world lying on the territorial border between Iran and Qatar.

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