Iran in talks with Maersk on South Pars oil layer

Business Materials 19 April 2017 12:16 (UTC +04:00)

Baku, Azerbaijan, Apr. 19

By Dalga Khatinoglu – Trend:

Iran continues talks with Danish Maerk Group to have them replace the current contractor of the South Pars oil layer development project.

“Iran hopes to reach a final agreement with Maersk in near future,” Oil Minister Bijan Namdar Zanganeh said Apr.19, Mehr reported.

Currently the contractor of the project is Pars Oil & Gas Company. Iran started production of 25,000 barrels per day of crude oil from offshore South Pars gas field’s oil layer recently and plans to add 10,000 b/d to this volume in Summer.

The South Pars field, shared between Iran and Qatar contains 40 trillion cubic meters of recoverable gas and 50 billion barrels of gas condensate reserves.

A third of field is locate in Iranian waters, containing an oil layer with 14 billion barrels of in-situ reserves.

Iran launched a floating production storage and offloading (FPSO), manufactured by Norwegian DNV GL, there in February and started oil extraction from oil layer.

Maersk was major contractor on the Qatari side of oil layers of South Pars and got replaced by French Total last year.

Iran plans to develop the second phase of oil layer at South Pars to increase the output level to 54,000 b/d.