Baku, Azerbaijan, July 25
The National Iranian Oil Company (NIOC) investigated the proposal submitted by Russian Gazprom for development of the North Pars gas field.
The proposal for development of the gas field was discussed in recent meetings of the NIOC special advisory committee for management of the country’s oil reservoirs, Integrated Planning Department of NIOC said in a statement.
The North Pars gas field is located 120 kilometers southeast of Bushehr province in the Persian Gulf waters. The field contains more than 57 trillion cubic feet of gas in place. The investment required for the development of North Pars is estimated at more than $16 billion: $5 billion for upstream and 411 billion for downstream (LNG plants) sectors. Situated at a depth of 4,000 meters, dome-shaped North Pars covers 500 square kilometers.
So far, 16 wells have been drilled in North Pars, but development and production operations are yet to start there.
North Pars, whose production capacity equals that of four phases of South Pars, would be able to supply 3,600 mcf/d of gas, which would require the drilling of 46 wells. North Pars is estimated to be producing at such rate for 25 years. The recovery factor calculated for North Pars, which is expected to keep gas flowing for 35 years, currently stands at 61 percent, according to Iran’s oil ministry.
The field is planned to be developed in four phases, each of which would be producing 1.2 billion cubic feet per day.
In December 2017, Gazprom signed a memorandum of understanding with NIOC to provide the National Iranian Oil Company with the result of its technical surveys and development plans for three Iranian offshore gas fields in the Persian Gulf, including North Pars, Kish and Farzad-A and Frazad-B gas fields by April 2018.
Last year Russian energy company Gazprom also signed a non-disclosure agreement with Oil Industries' Engineering and Construction (OIEC) of Iran for the development of the Azar and Changuleh oil fields.