Agency: Stagnation at South Pars gas field despite 46 bln investment from Iran

Iran Materials 23 May 2013 16:51 (UTC +04:00)

Azerbaijan, Baku, Trend/ May 23, D.Khatinoglu/

The new phases of Iran's giant gas field, South Pars, have been developed only between 47 to 61 percent during last three years despite the 46 billion investment, Mehr reported on May 23.

Iran holds World's second biggest gas reserves (above 33 trillion cm), however, the country's gas production meets only domestic consumption.

Based on the latest report released by U.S. Energy Information Administration (EIA), Iran's both gross gas production and consumption stood at 224 billion cubic meters in 2012.

So far, eight phases of South Pars became operational, while the phases 9 and 10 produces gas with 75 percent capacity.

According to official statistics, Iran produced 86 bcm of gas from South pars during last solar year, which ended on March, 19, 2013.

Iran hasn't completed drilling 6 remained wells of phases 9 and 10 since 2009 yet and these phases operates with 18 wells and produces 42 mcm/d of gas.

Mehr said during new report that the in June 2010 some domestic companies signed a contract to complete development of new phases in 35 months, but the phases 13, 14, 19, 20, 21, 22 and 24 have been developed respectively by 61 percent, 47, 61, 46, 46, 60 and 60 percent.

On the other hand, the development of phases which be started earlier that mentioned phases is not completed.

For instance, the Phases 12, 15, 16, 17 and 18 are developed about 80 percent and they vitally need financing to be completed.

According to Mehr, none of them are to be commissioned until the end of current Iranian calendar (March 2014).

Mehr reported based on official statistics that the investments amount put on new phases were $16 billion, $20 billion and $10 billion respectively during last three years (totally equals to $46 billion), but during mentioned time the gas output from South Pars has not increased even by one cubic meter.

The head of Iran's National Oil Company Ahmad Ghalebani said recently that the country planned to invest $30 billion more in South Pars during current solar year.