“The first stage of drilling in this phase which includes drilling four production wells is underway despite the limitations caused by the coronavirus, and sofar 8,000 meters of drilling has been conducted,” Hamid-Reza Masoudi said.

According to the official, the total amount of drilling operations in this phase is 15,000 meters, which means over 53 percent of the total drilling has been completed so far.

Masoudi stressed the need for taking all the necessary measures to start early production from the last phase of the South Pars joint field and added: “The contractors of the pipeline and the platform for the mentioned phase have been determined and the engineering operations will begin at 11B platform after Oil Ministry approval.”

He emphasized that Petropars tries to make maximum use of the capacities and capabilities of domestic companies and the workforce in developing this phase.

The official had earlier said that in order to achieve early production from this phase, drilling operations will be conducted in two stages, saying: “In the first stage, a descriptive well and three production wells will be drilled and completed, and then after the installation of the phase’s platform, eight more wells will be drilled and completed.”

Former Iranian Oil Minister Bijan Namdar Zanganeh, on December 14, 2020, ordered the official beginning of the drilling operations for the first well of Phase 11 in the Persian Gulf waters.

In the early production stage, the output of this phase will reach 500 million cubic feet (equivalent to 14 million cubic meters) per day.

In November 2016, Iran signed a $4.8 billion agreement with a consortium including France’s Total, China National Petroleum Corporation (CNPC), and Petropars, a subsidiary of the National Iranian Oil Company (NIOC), on development of phase 11, however Total and CNPCI pulled out of the project in 2019 due to the U.S. sanctions.

Currently, Petropars is developing the phase 11 project after its partners left the contract.

The South Pars phase 11 project will have a production capacity of two billion cubic feet per day or 370, 000 barrels of oil equivalent per day. The produced gas will be fed into Iran’s gas network.

South Pars is the world’s largest gas field, covering an area of 3,700 square kilometers of Iran’s territorial waters.

The giant field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate. The field is divided into 24 standard phases.

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The mentioned Engineering, Procurement, Drilling (EPD) contract includes engineering services, procurement, drilling, drilling services, and completion of 10 new wells over a 16-month period, according to Petropars Managing Director Hamidreza Masoudi.

Masoudi stated that based on the deal, nine production wells and a well for discharging unwanted fluids will be dug.

“The contractor has been selected through tender and in competition with other competent contractors; based on the contract it is expected that about 40 kilometers of drilling operations will be conducted in this project,” he explained.

Back in July 2020, the Iranian Petroleum Engineering and Development Company (PEDEC) and Petropars Group signed a deal for completing the development of the South Azadegan oilfield in southwestern Iran.

The deal, worth $961 million plus 11.83 trillion rials (about $281.66 million), was signed by PEDEC Managing Director Touraj Dehqani and Petropars Head Hamidreza Masoudi at the presence of Oil Minister Bijan Namdar Zanganeh.

South Azadegan is one of the five major oilfields Iran shares with Iraq at the western part of Iran’s Karoun region, known as West Karoun fields.

West Karoun holds great importance for the country’s oil industry since according to the latest studies, its in-situ deposit is estimated to be 67 billion barrels containing both light and heavy crude oils, and therefore it could have a big impact on Iran’s oil output increases in the future.

Having an estimated 67 billion barrels of in-situ oil, West Karoun fields definitely deserve the spotlight which has been put on them recently.

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The deal was signed by Mohammad Meshkinfam, the managing director of Iran’s Pars Oil and Gas Company (POGC), as NIOC representative, and Hamidreza Masoudi, the managing director of Petropars, in a ceremony on Monday.

The signing ceremony was also attended by Oil Minister Bijan Namdar Zanganeh.

Based on the deal, Petropars is going to develop the field to boost its output to 28 million cubic meters per day of sour gas over a five-year period.

The gas produced by this field will be transferred to the onshore facilities of Pars 2 Region in Kangan for processing.

Back in July 2020, NIOC Managing Director Masoud Karbasian had said that the operator for Farzad-B gas field was determined and the deal for the development of the field was going to be signed in the near future.

Farzad-B, with estimated reserves of 12.8 trillion cubic feet of gas, was opened in 2008 by a consortium of three Indian companies: ONGC, Oil India Limited, and Indian Oil Corporation.

India was supposed to develop the field after its exploration, but the Indian side stopped its activities after the West intensified sanctions on the Islamic Republic in 2012.

With the lifting of the sanctions, India once again called for the development of Farzad-B by ONGC Videsh which is the overseas investment arm of the country’s biggest energy exploration firm.

In May 2019, Zanganeh said the Oil Ministry had prepared a plan for financing the project and the framework of the contract was going through final editions.

NIOC asked the Indian side to submit a technical plan and then a financial proposal for the development of the field, however, after submission Iran did not agree with the other side’s financial proposals.

Later in August 2019, Karbasian announced that Iran was not going to wait for India on developing Farzad-B gas field, and soon the project would know its operator.

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CNPC International is one of the two members of a consortium to develop the project along with Iran’s Petropars. France’s Total was also in the consortium before it pulled out of the project due to US sanctions on Iran’s oil industry.

“Arrangements have been made to begin developing the project this [calendar] year under any circumstances. We will be able to speak more definitely in two months,” he told Shana.

The official said he would disclose more information about the project in the coming weeks, adding that the capabilities of Iranian companies were incomparable with the time South Pars development had started back in 2002.

“Undoubtedly, Petropars has the qualities needed for developing the first phase of the project.”

Aban and West Paydar

Dehghan said that the contract for developing Aban and West Paydar oilfields was progressing and so far, four joint management committees had been held concerning the projects.

He further said that the Supreme Economic Council had signed off on developing Sepehr and Jofeir fields and implementation of their contract would start within days. Moreover, contracts of Cheshmeh Khosh, Dalperi and East Paydar fields would be enforced this calendar year and their development would begin afterwards.

Talks on the Go

Dehghani said that NIOC’s talks with domestic and foreign companies were continuing despite US’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA), a nuclear deal Tehran struck with the P5+1 group of countries back in 2015.

In the calendar year of 1397 which ended on March 20 2019, NIOC signed a total of 12 study MoUs with Iranian and foreign companies, which would lead to signature of several contracts by the end of this calendar year, he added.

The official said studies valued at roughly $150 million were being carried out for NIOC under the over 100 MoUs it signed with numerous companies in the aftermath of the nuclear deal.

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