South Pars field revenues account for over half of Iran's state budget

Oil&Gas Materials 21 October 2021 14:54 (UTC +04:00)

BAKU, Azerbaijan, Oct. 21

By Elnur Baghishov – Trend:

About 54 percent of the Iranian government's budget is provided by sales of hydrocarbons extracted from the Iran-Qatar joint South Pars gas field (called North Dome in Qatar), Executive Director of Iran’s South Pars Gas Company (SPGC) Hadi Hashimzadeh Farhang said, Trend reports citing Shana News Agency.

According to the director, the annual budget of the Iranian government for last Iranian year (March 20, 2020 through March 20, 2021) amounted to 6.4 quadrillion rials (about $152 billion).

“Meanwhile, the value of products produced from rich gas extracted from the South Pars gas field was 3.84 quadrillion rials (about $91.4 billion),” he added.

Hashimzadeh Farhang noted that if the planned volume of rich gas is extracted from each phase of the South Pars gas field, it will help increase the value of the country's national raw materials by 1 percent.

The director also said that the share of gas in the country's fossil fuel consumption basket is 73.7 percent, of which 50 percent belongs to the South Pars Gas Company.

As reported, the South Pars gas field (called North Dome in Qatar) is a joint gas field of Iran and Qatar. The proven reserves of the South Pars Gas Field are estimated at 51 trillion cubic meters of gas, of which 36 trillion are extractable. Iran's share in the field is 14 trillion cubic meters of gas and 18 billion barrels of gas condensate. Iran has so far spent $90 billion on projects of the South Pars gas field.

The phases of the South Pars gas field are located in an area of 3.7 km. Iran has extracted more than 1.8 trillion cubic meters of gas and 2.2 billion barrels of gas condensate worth $335 billion by the end of last Iranian year (March 20, 2021).

Reportedly, Iran is to spend $25-$30 billion to maintain extraction from the South Pars gas field. Iran extracts daily 700 million cubic meters of gas from this field.


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