Iranian private company helps developing South Pars Gas Field
Baku, Azerbaijan, May. 3
By Khalid Kazimov - Trend:
Dana Energy Company, an Iranian private energy firm, has launched a project for drilling several off-shore wells in the phases 17 and 18 in the South Pars Gas Field.
Mohammad Iravani, the head of Dana Energy Company, said that the company has finished the project by 92 percent, Fars news agency reported.
Drilling an offshore well in the South Pars Gas Field costs $35-$37 million on average, Iravani added.
Iranian Oil Ministry has earlier announced that the country needs $400-$500 billion in investment to develop its oil industry.
Developing the upstream sector of Iran's oil industry alone requires $200 billion. Therefore, the oil ministry is drawing up plans to lure foreign investors, by introducing a new model of petroleum contracts namely IPC.
The IPC is a framework that lays out the basic structure - and some details - regarding all future petroleum contracts in Iran. It was earlier announced that the country plans to boost oil production to 5.7 million barrels a day and gas output to 1.4 billion cubic meters a day by 2021.
By holding 157.8 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil. The Islamic Republic also holds 34 trillion cubic meters of proven gas reserves, sharing 18.2 percent of total global gas reserves.