Iran drills South Pars oil wells

Iran Materials 13 June 2012 18:12 (UTC +04:00)

Azerbaijan, Baku, June 13/Trend M. Moezzi

Iranian operations to drill 6 oil wells in the joint South Pars oil and gas field's oil layer have finished.

Work to install an offshore platform will start and operations to activate the wells to produce oil will begin, the Shana news agency reports.

South Pars' oil reserves are very important because Iran and Qatar share them. The field's oil layer is projected to hold 7.5 billion barrels of oil. With a 10 percent recovery factor, the layer would produce 750 million barrels of oil.

The oil layer in South Pars is divided into four areas, A1, A2, B and C. Iran's working on the A1 layer which it shares with Qatar. The other three areas are in Iran's waters entirely.

The South Pars Oil and Gas Company has estimated development of South Pars' oil layer (both joint and non-joint) will cost $800 million. If the project runs into a shortage of money this year, funding will be obtained from other projects.

Iran and Qatar share the 9,700 square kilometer South Pars field. As Qatar has raced ahead in developing South Pars, Iran has been hampered by international sanctions and lack of funds. It is trying to speed up its South Pars operations to avoid losing any more of the field's resources to Qatar.