Kish Island operations are new. Would you please tell us about IOOC’s handling of Kish operations?

Operations began on Kish Island in 1996 when IOOC carried out a feasibility study there to explore the Persian Gulf’s gas potential. After that, the previous well was extended and a new well was drilled until 2001 and 2004. As hydrocarbon potential was proven in the Dehram reservoir of Kish at 48 tcf, IOOC had a fresh impetus to start work in this area. Gas supply to Kish Island, building a gas compressor station, developing the Kish gas field, and other favorable conditions on this island for logistics systems entirely represent a key and potential factor for the island to become an operational zone. IOOC’s activity in Kish comprises steering an FPSO in the South Pars Oil Layer. I have to add that Pars Oil and Gas Company (POGC) is tasked with operating and developing the gas section of the South Pars gas field while IOOC deals with the South Pars Oil Layer. Another segment of our activity on this island was to supply gas from Siri Island to Kish Island. Until July 2022, we were delivering on average 25 mcm/d of gas to power plants in the north and south of the island by two gas compressors. But since then onwards, the bulk of gas needs of the island have been supplied from the mainland. Gas supply to Kish Island was handled by IOOC for 15 years. As of February 2023, owing to our management of the Kourosh FPSO in the South Pars Oil Layer, at the discretion of the CEO of IOOC, steering and repairing Alvand Rig was assigned to the Kish division of IOOC. Currently, a 12-member team is drawing up a plan for the overhaul of the rig. Alvand Rig would be soon moved from Siri Island to Kish where we would start overhaul operations in March 2024.

When will the overhaul of Alvand Rig end?

We have divided the project into 18 subprojects. According to our schedule, we need to finish the overhaul within 24 months. We started work in July and we will try to finish the job in the shortest possible time because of lucrum cessans amounting to dozens of millions of dollars per annum.

Could you tell us the technical specifications of the Alvand Rig?

Owned by IOOC, Alvand Rig was constructed in 1975. It has long been carrying out reparations. It was put out of service nearly a year ago. From 2018 to 2021, it worked over 10 wells. When it is overhauled, oil fields on Siri Island would see their oil output rise 4 to 5 tb/d.

How much has been allocated for the overhaul of this rig?

$10 million has been earmarked, while 400 persons would be directly engaged during the overhaul. Iranian engineers and technicians would be in charge of the rig overhaul. I should note that it is the first time such an operation is underway in Kish.

The flare of the first gas well was recently turned on in the Kish field. How many wells have been drilled in this field?

The Kish gas field, comprising the Kangan and Dalan gas reservoirs 3,200-5,000 meters deep underwater, is located 60 km east of Lavan Island. With an estimated 40 tcf of gas reserves, it is the 17th largest gas reservoir in the world. Once it is fully operational, it will be producing the equivalent of three South Pars phases. The Kish gas field is divided into two clusters, one cluster with 6 and another with 8 wells. They include 14 onshore and 2 offshore wells. Nearly all wells are completed and are in their final stage. The onshore wells are about 5 km deep.

What does the Kish gas field development plan involve?

The Kish gas field development plan involves gas transmission to the Kish power plant, offshore and onshore installations, the transmission of natural gas from Iran Gas Trunkline 7 (IGAT-7) from Bastak in Hormozgan Province to Bandar Aftab and then into Kish Island via onshore and offshore pipelines. The objectives of this project include replacing gasoil with natural gas for fueling power plants on Kish Island, saving costs, guaranteeing a stable power supply to the island, and preventing environmental pollution. Phase 1 development of the Kish gas field includes offshore and onshore installations, completing facilities (completion of 14 wells, wellhead line pipes, and auxiliary installations), laying 220 km of subsea pipeline from Kish Island to Assaluyeh, and building auxiliary installations in the current refineries of South Pars.

What is the objective behind developing the Kish gas field?

The objective is to produce and transmit 1 bcf/d of gas from clusters 1 and 2 of the Kish field to Assaluyeh to make maximum use of the refining capacity of the refineries in South Pars and recover about 10 tb/d of gas condensate. Furthermore, the development of Phases 2 and 3 of the Kish gas field includes offshore and onshore installations around Kish Island, building offshore pipelines, and auxiliary installations for integrated work. In phases 2 and 3 of the Kish gas field, the idea is to produce and transmit 2 bcf/d of gas from the offshore platforms of the Kish field to Assaluyeh and recover about 20 tb/d of condensate.

How much oil can Kourosh FPSO store?

The oil extracted from the wellhead platform of the oil layer is piped to Kourosh FPSO where it is refined and stored. The vessel can store 730 thousand barrels of oil.

Why is crude oil transmission on this vessel among the most sophisticated?

Because oil transfer and exports are done offshore, FPSO is on the water. Therefore, the tanker is connected to this vessel to receive and export oil and is exposed to water flow, which carries out loading operations. It is noteworthy that more than 250 FPSOs are currently operating in deep waters across the globe, while in the Persian Gulf, Kourosh is the only one. I would like to note that few Iranians would be able to steer this vessel as we did not have much experience; however, our team managed to steer it effectively.