Touraj Dehqani stated that, according to planning, the gas extraction ceiling from the shared South Pars field will reach 722 million cubic meters (mcm) per day by the winter of 1404.

Dehqani, speaking on Saturday during the third day of the 29th International Oil, Gas, Refining & Petrochemical Exhibition (Iran Oil Show 2025), noted that 1403 was a critical year for Iran’s gas industry due to various challenges, including an early and unprecedented cold wave that coincided with the new government’s term. During this period, Pars Oil and Gas Company supplied a significant portion of the country’s gas needs.

He added that the company provides 70% of Iran’s domestic gas consumption, 50% of petrochemical feedstock, and 70% of power plants’ gas demand. Additionally, the gas condensates produced in South Pars play a key role in gasoline production and refinery feedstock.

 10 mcm increase in gas extraction record 

Dehqani noted that last year, the daily gas extraction record from South Pars reached 716 mcm, up by 10 million cubic meters from the 1402 record of 706 million. Despite Iran holding the world’s second-largest gas reserves and being the third-largest producer, it is also the fourth-largest consumer, creating a serious imbalance. He stressed the need for effective energy consumption policies at the national level.

Under the seventh development plan, specific targets have been set to increase gas extraction. Dehqani expressed hope that efforts this year would lead to a 25 to 30 million cubic meter increase in production, partly to compensate for declining output and partly to expand capacity.

 Expansion projects in Kish, North Pars, Balal, Farzad fields 

Dehqani outlined plans to develop gas fields, including Kish, North Pars, Balal, and Farzad, over the next five years, aiming for a 200 to 250 million cubic meter increase in extraction.

He emphasized the $80 billion investment in the company and the value of its skilled workforce, calling them a "valuable asset."

 Energy imbalance, gas compression enter public discourse 

Dehqani highlighted that terms like "energy imbalance" and "gas compression" have become part of public discourse. He acknowledged delays in maintaining and enhancing production at South Pars, which is now in the second half of its lifespan.

Last year, gas compression contracts were finalized, and strategic management was handed over to the company. Dehqani stressed the need to accelerate these projects, with each hub requiring a clear timeline and a $2.4 billion budget to succeed.

 Infill drilling for production management 

The CEO noted that infill drilling—a reservoir management method—began in 1403, with four contractors and seven active rigs in the field. One well started production late last year, with two more coming online soon.

Regarding the Kish gas field, current production capacity stands at 28 million cubic meters per day, with a refinery under construction at Bandar-e Aftab for Phase 1 development. Full-scale drilling at Kish will begin within a month, with production expected in three to four years.

 Offshore drilling rigs shortage 

Dehqani identified a shortage of offshore drilling rigs as a major challenge. To meet gas production targets, Iran’s National Oil Company has introduced incentives, including 10-year guaranteed leasing contracts at competitive rates.

 Jask Oil Terminal fully operational by yearend

The Jask oil terminal, a major project achievement, is now capable of exports, though stable shipments await completion of a minor project. Dehqani confirmed the terminal—80% complete by the end of the previous administration—will be fully operational by yearend, with $1.8 billion invested.

 Maintenance, winter readiness 

Dehqani announced major maintenance on South Pars platforms ahead of winter 2025, with Phase 14 nearing completion and Phase 12 next in line.

The production ceiling for South Pars this year is set at 722 million cubic meters per day, matching processing capacity.