Iranian official: Projects worth $55.5 billion underway in South Pars

Iran Materials 8 September 2012 17:56 (UTC +04:00)

Azerbaijan, Baku, Sep.8/ Trend F.Milad/

The projects worth 680 trillion rials ($55.5 billion) are underway in the South Pars gas field, Pars Oil and Gas Company's managing director Mousa Souri said.

Mousa Souri told the Shana news agency that once all the development projects come on stream, the South Pars output will hit 800 million cubic meters per day.

Currently, the gas field's output stands at around 280 million cubic meters per day, he noted.

National Iranian Oil Company will start selling 15 trillion rials (some $1.2 billion) in bonds in the near future to finance oil and gas projects, the NIOC head Ahmad Qalehbani said on Friday.

Five trillion rials (some $400 million) will be used for financing offshore oil projects and 10 trillion rials (some $800 million) will finance the South Pars gas field development projects, Ahmad Qalehbani added.

Some $30 billion was invested last year in Iranian oil industry despite global sanctions, official at the Oil Ministry Mohsen Khojasteh-Mehr said on August 24.

Mohsen Khojasteh-Mehr told the Fars News Agency that the oil industry faced sanctions last year, which led to a reduction in foreign investments. But, we managed to absorb some $30 billion to oil projects, he noted.

Oil Minister Rostam Qasemi said in April that at least $30 billion will be invested in the domestic oil industry this year.

He added that a major portion of the sum will be allocated to the South Pars gas field projects.

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.