TEHRAN (Iran News) – The executive operations for the second phase of South Pars Oil Layer’s development project officially began in a ceremony held on Saturday, the last day of the 27th Iran International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show 2023).
The ceremony was attended by Head of the National Iranian Oil Company (NIOC) Mohsen Khojasteh-Mehr, Head of Pars Oil and Gas Company (POGC) Mohammad-Hossein Motejali, and Vice Chairman of the Parliament’s Energy Committee Mousa Ahmadi, Shana reported.
The deal for the implementation of the second phase of the South Pars Oil Layer’s development project was signed between Iranian Offshore Engineering and Construction Company (IOEC) and a renowned foreign company back in March 2022.
The $500-million deal, prepared based on the Oil Ministry’s new model of upstream contracts, was signed on March 16 in a ceremony attended by senior officials including Oil Minister Javad Oji and Mohsen Khojasteh-Mehr.
Under the framework of the development contract, which has been finalized for a 20-year period, the contractor is obliged to provide all the necessary financial resources to implement the project, including direct capital costs, indirect costs, and operating costs.
Based on the deal, the project description includes upgrading and modifying the existing processing vessel and platform, overhauling existing wells, digging new wells including production and water injection and assessment wells, construction of oil discharge and loading system, and strengthening the existing water injection system.
During the implementation of this contract, while updating the reservoir models using new data analysis, new wells will be drilled using horizontal drilling technology and also, a new unloading and loading system will replace the existing one.
According to Khojasteh-Mehr, due to the special situation of the oil layer, ordinary vertical drilling methods cannot be used for drilling wells in this field so using the new horizontal drilling technology by the foreign contractor will also be a step toward transferring this technology into the country.
South Pars Oil Layer, which holds about 900 million barrels of oil, is located in southern Iran in the Persian Gulf waters, where the Islamic Republic shares the giant South Pars gas field with Qatar.
The field is the northeastern extension of Al-Shaheen oil field in Qatar. The Iranian portion of the field is located at 67 meters of water depth.
