Iran to extract oil from South Pars gas field

Iran Materials 22 September 2012 15:00

Azerbaijan, Baku, Sep.22/ Trend F.Milad/

Iran will start extracting oil from the South Pars gas field's oil layer by the early months of the next calendar year (starting on March 20, 2013), Pars Oil and Gas Company's managing director Mousa Souri said.

Drilling operations are underway by two rigs simultaneously, Souri said, the IRIB reported.

The oil layer is projected to yield 35,000 barrels per day (bpd) within the first stage, he said, adding that the output will be increased to 54,000 bpd on the next stage.

Iran started the drilling at the South Pars oil layer on July 15, the Pana news agency quoted Souri as saying.

Around $800 million is needed to develop the oil layer both in onshore and offshore sections, he said.

The South Pars oil layer is estimated to hold some 1.6 billion barrels of crude.

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.