Gov’t advances major oil industry project with $17b gas pressure boost deal

SHANA (Tehran) – In the final days of the Iranian year 1403 (March 2025), the Oil Ministry signed nearly $17 billion in contracts with four domestic companies to build, install, and operate gas pressure booster platforms in the South Pars gas field—the world’s largest. This marks the first step in sustaining production and preventing a future gas crisis.

Under the agreements:

- Petropars will develop Hubs 1 and 7 ($4.8b) 

- Khatam al-Anbiya Construction Headquarters will handle Hubs 3 and 6 ($4.9)

- Oil Industries Engineering and Construction (OIEC) will manage Hubs 2 and 5 ($4.8b) 

- Mapna Group (Nirpars Co.) will execute Hub 4 ($2.36b) 

The seven hubs, worth a combined $17b, will include multiple phases:

- Hub 1: Phases 12A, 11B, 12B, 11A 

- Hub 2: Phases 15, 16, 3, 21 

- Hub 3: Phases 1, 5, 17, 18 

- Hub 4: Phases 2, 19C, 19AB, 20, 6 

- Hub 5: Phases 13AB, 10, 13BD, 14AC 

- Hub 6: Phases 11, 22, 24A, 23, 24B, 14BD 

- Hub 7: Phases 4, 7, 8, 9 

 Preventing a gas crisis 

South Pars, which supplies 70% of Iran’s gas, faces declining reservoir pressure. Without intervention, output could drop sharply—for example, a wellhead pressure decrease from 120 to 90 bar would cut daily production from 1 billion to 700 million cubic feet. The 14 new platforms, each with 2 billion cubic feet/day capacity and 90-bar pressure boost capability, aim to counter this decline.

Engineering challenges 

Each platform weighs ~20,000 tons, far exceeding Iran’s current 7,000-ton construction capacity. International consultants designed the structures, but domestic firms will lead execution, including sourcing four 30MW compressors per platform where possible. The "float-over" installation method will be used.

Urgent warnings 

Experts and Iran’s Parliamentary Research Center warn that without action, gas shortages could hit 453 million cubic meters/day by 2031 and 579 million by 2041, risking winter supply crises. Meanwhile, Qatar’s aggressive extraction from the shared field adds competitive pressure.

 

Parallel measures 

- Drilling 35 new wells 

- Acidizing 400 existing wells 

- Annual maintenance on 10-11 wells 

Oil Minister Mohsen Paknejad called the project "more urgent than daily bread." With South Pars generating $130M/day across 26 phases, the stakes for Iran’s energy and economic security are immense.

News ID 656180

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