Iran inks $180m deal with domestic firm for South Pars drilling operations

Iran Materials 2 January 2012 14:45 (UTC +04:00)

Azerbaijan, Baku, Jan. 2 / Trend F.Milad/

Iran's Pars Oil and Gas Company (POGC) and a domestic firm, named Global Petrotec, signed a $180 million deal for drilling exploratory wells in the South Pars gas field, the POGC head Mousa Souri told the Mehr news agency.

According to the deal, some 6 kilometers of drilling should be carried out within 470 days to specify details on oil layers, define amounts of deposits and prepare master development plan (MDP) for the South Pars gas field.

Oil minister Rostam Qasemi has ordered all the contractors of the South Pars gas field development projects to work round the clock in three shifts to complete development of all the South Pars phases.

Iran has attached the priority on boosting gas production capacity from its joint oilfields with Qatar and Saudi Arabia, Qasemi said, the IRNA news agency reported.

Iran sits on the world's second largest natural gas reserves after Russia and is trying to grow its gas production by increasing foreign and domestic investments, especially in its South Pars gas field.

The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.