16 March 2019 - 22:39
  • News Code: 288080
Iran to Operate 27 South Pars Phases by March 2020

TEHRAN (Shana) -- Iranian Minister of Petroleum Bijan Zangeneh said the country would be recovering natural gas and crude oil from 27 phases of the massive South Pars gas field by late March 2020. 

Addressing a press conference in the southern city of Assaluyeh on Saturday evening, the official said Iran was producing more gas from the joint gas field than Qatar, adding little was felt of the cold thanks to the smooth gas supply in Iran this winter. Iran shares South Pars with Qatar in the Persian Gulf.

He said despite the enormous gas supply volumes in Iran, consumption was still too high and energy was not being consumed efficiently, however, the official added, “no industries faced gas shortages this winter.” 

He said for the first time, ethane production balance was positive in Iran this year.

Phases 13 and 22-24

The Iranian Minister of Petroleum went on to add that Iran had invested $11 billion in the development of phases 13 and 22-24 of the massive offshore gas field so far.

He further said that the licensing round for the export of Iran’s gas to Oman was ready but, thanks to the sanctions, no international developer had bid to develop the project so far.

“We have no problem for starting LPG exports, but I would not disclose any more details about the matter,” he said elsewhere in the press conference.

Regarding Phase 11 development project of South Pars, he said a high-profile Chinese delegation was scheduled to travel to Iran to consider development of the project. “The CEO of the National Iranian Oil Company (NIOC) has travelled to China for this matter and he will return to the country tonight,” Mr. Zangeneh said.

Gas Exports

“As far as gas exports to Pakistan are concerned, legally speaking, we are in the position of claimant, and they also have political excuses, saying they are under pressure from the UAE and Saudi Arabia, but we have a valid contract; Pakistan cannot find any gas cheaper than Iran’s.”

“We had also proposed to export gas through Iraq to that country and the Iraqis have only verbally accompanied us in this,” he added.

He said: “The sanctions have not impacted Iran’s gas exports, but there are hurdles regarding receiving gas money from Iraq which are being resolved.”

Us Responsible for Oil Market Tension

Mr. Zangeneh said: “Americans talk a lot and I advise them to talk less. They has caused tensions in the oil market for over a year now and they are responsible for it; and if this trend continues, the market will be more tense.”

He said, “We do not know whether US waivers would be extended or not, we will do our job but they (the US) says something new every single day.”

OPEC and Trump

He said South Pars Oil Layer (SPOL) development plan needed technology because its development process was complicated; "Iranian companies may be able to develop SPOL along a tech-savvy company."

The official also announced that Phase 13 and 22-24 refineries were complete at their startup, and their Sulfur Recovery Unit (SRU) units were ready, meaning not a gram of gas would be flared in the refineries.

Mr. Zangeneh said the Joint Ministerial Monitoring Committee (JMMC), which has been established to oversee compliance with the +OPEC output cut agreement, "is not valid to the extent that it has been advertised and OPEC is the main (decision-making) body."

"The US president, Donald Tramp, released a Tweet, and some responded to it on their own. OPEC is not represented by anyone."

News Code 288080


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