23 October 2021 - 11:29
  • News Code: 322946
South Pars Gas Output Peaks: CEO

TEHRAN (ُShana) -- The CEO of Pars Oil and Gas Company said: "Gas production from South Pars has reached its peak.” 

According to POGC, Mohammad Meshkinfam said the above warning that from the next four years, the field would face a drop in production as much as one phase of South Pars every year.

Addressing a meeting held in the presence of the CEO of the National Iranian Oil Company and a group of members of the Planning, Budget and Accounts Committee of the Islamic Consultative Assembly in South Pars Special Economic Zone on Wednesday evening, Mr. Meshkinfam outlined the measures taken in South Pars, and said the area of this joint field in the Iranian part is about 3,700 square kilometers.

He stated that the amount of in-place gas reserves in the Iranian section of the field is 410 trillion cubic feet, and said South Pars has 8% of the world's gas reserves and 50% of Iran's gas reserves, and currently 70% of the country's gas consumption is supplied from this field.

700 million cubic meters per day (mcm/d) of gas is produced from South Pars, while 252 mcm/d is produced from other fields and 70 mcm from is produced in the form of associated petroleum gas (APG) which means South Pars enjoys a 70% contribution in the country’s total gas production mix. 

He further said that the cumulative rich gas recovery from the field has reached 1,994 bcm since the beginning of production from the field, and said the value of South Pars products in this period is estimated at $359 billion.

Overtaking Qatar 

Meshkinfam considered the competitive production state of Iran and Qatar as favorable, and noted: “Qatar extracts 628 mcm/d of gas from this joint field, while Iran has reached 700 mcm/d overtaking its rival in the field.”

According to the CEO of Pars Oil and Gas Company, 37 gas platforms, 340 wells, 3,200 km of pipelines and 50 operational trains are being operated in the offshore sector of South Pars.

He named the volume of investment in the massive offshore field since the beginning of its development at $80 billion, and said out of a total of 37 platforms, 17 main platforms with a production capacity of 28 mcm/d of gas and 20 sub-platforms with a production capacity of 14 mcm are installed and operational in the Persian Gulf.

"Each of the main platforms in the field, with a capacity of 28 mcm/d, supplies gas for about one million households," Meshkinfam said.

The senior POGC official announced the weight of each topside of South Pars field with its accessories at 8,000 tons, adding in total, for each of the South Pars offshore trains (including drilling wells, offshore topsides and subsea pipelines) nearly $1 billion has been invested.

Referring to the localization of Persian Gulf gas rigs, he said: "All the rigs have been built and installed by Iranian contractors, including SADRA, Iranian Offshore Engineering and Construction Company, ISOICO (Iran Shipbuilding & Offshore Industries Complex) and SAFF Offshore Industries Company."

He further announced that part of the Phase 14 refinery would come online by the end of the current Iranian calendar year to March 20. 

The CEO of Pars Oil and Gas Company estimated the value of the products of each South Pars refinery at $10 million per day, and added: “The value of the products of each South Pars gas refinery is estimated at $3.5 billion per year, which is close to one percent of the country’s GDP.”

CEO Warns of Production Drop from 2025

He announced the total production of other South Pars products as 12 million tons of ethane, 12 million tons of liquefied petroleum gas (LPG) and 700,000 barrels of gas condensate per day, and said: "Most of the gas condensate produced from South Pars in the country turn into valuable products domestically."

Expressing concern over the current status of South Pars gas production in the coming years, Meshkinfam said: "Gas production from South Pars has reached its peak, but from the next four years, it is expected to decrease by one phase of South Pars (28 million cubic meters) annually."

He also said that so far 15% of the field’s gas reserves have been produced, adding with the current facilities and equipment, 50% of the field’s reserves will be recoverable. 

In the end, Meshkinfam estimated the capital needed for the development of other gas fields in the country at $17.5 billion, and said: "By investing about $20 billion in the South Pars joint field, 75% of gas extraction will be achieved, and the 25% increase is worth roughly $500 billion.”

News Code 322946


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