To get to know about the latest developments about South Pars, “Iran Petroleum” has interviewed Shobeir Nabavi, director of infill wells project.
How many wells are to become operational at this field by the end of the current calendar year in March 2026?
The first infill well came online last March, to be followed by the second one in early June and the third one in late July. We hope that six more wells would be completed by March 2026.
How much will these wells enhance the South Pars output capacity?
Each well can bring about 1-2 mcm/d output hike on average. If six more wells become operational by March 2026, about 11 mcm/d would be added to the South Pars output capacity. Add to this the 1.7 mcm/d additional output achieved last calendar year. Totally, about 13 mcm/d would be added to the South Pars output from infill wells. The output hike that is forecast to be achieved from 9 infill wells would be equivalent to half a standard phase, or 500 mcf/d (14.3 mcm/d). Once the total 35 wells have been drilled, about 36 mcm/d would be added to the gas output capacity; equivalent of 1 ½ standard phase.
What share have domestic manufacturers had in this project?
Although the technical knowhow used in offshore drilling is much more sophisticated, is associated with higher-risk and is costlier than in onshore drilling, it has been indegenized in Iran in recent years and we are now technically capable of handling this job. Our local contractors handle the job from A to Z. Regarding equipment and commodities; we have made our outmost in using maximum benefit from local manufacturing potential. However, in some cases, for various reasons, we have imported some commodities. Currently, 10-12 wells have been drilled on each jacket of infill wells. That shows the high volume of work under way at South Pars.
How much investment has been made in this project?
This project involves four packages of work, for which $1.2 billion worth of EPD contracts has been struck with four contractors. The first package involves drilling 8 wells in partnership with Petropars Oil Well Services Co. (POSCO), an offshoot of Petropars, for $272 million; the second package involves drilling and completing 9 wells in partnership with Petroiran Development Co. (PEDCO) for $284 million; the third package involves drilling 9 wells in partnership with North Drilling Co. (NDCO) for $308 million; and the fourth package involves drilling 9 wells in partnership with Pasargad Energy Development Co. (PEDC) for $304 million. The necessary capital for this project is provided by Kangan Saba Co., dipping into National Iranian Oil Co. (NIOC) resources. Required permits have been obtained for financing this project. We’re trying to bring the project fully online by March 2028 or 2029.
Do you think the number of drilling rigs increase by the end of this project?
To drill 35 wells, 4 rigs are operating. However, we intend to receive necessary permits to expand this project. If we name the current project “Infill 1”, we can name the following ones “Infill 2” and “Infill 3” by drilling 20 wells. That would become operational within the framework of two new packages and by adding two more drilling rigs under EPD contracts. It is also noteworthy that some measures are underway at NIOC and POGC to boost national offshore drilling fleet, which can help accelerate this project. However, under the present circumstances, the said project is in the phase of engineering studies and license acquisition.
Have wells envisaged in this project come online on schedule?
Each project may face delay due to circumstances, and the Infill-1 project is no exception to this rule. However, there has been no significant delay that I can mention now. We are trying our best to bring all wells into operation based on schedule. In fact, in light of operational plans and challenges associated with this kind of drilling, we have faced some brief delays. We can even say that the Infill-1 project has been among the best, in terms of respecting timeframe.
To what extent can completion of these wells contribute to gas supply security in Iran? What if POGC took no action to drill such wells?
Without infill wells, gas imbalance would increase because these wells are spudded on platforms that have faced output decline due to pressure fall-off. Therefore, by drilling infill wells, this output decline and subsequently imbalance would be compensated partly. The average output for each infill well is estimated at 1.3 mcm/d. Now, if the infill projects had not come online, imbalance would have increased. As after the drilling of these 35 wells, an extra 36 mcm/d of gas is expected, the same amount of gas imbalance would be avoided.
Can you tell us about POGC’s experience, particularly infill wells, during the recent 12-day war?
Iran’s petroleum industry is no stranger to war conditions. We have already experienced eight years of the Imposed War. During the 12-day imposed war, the project was not halted even for a single day due to our contractual obligations. Despite critical conditions, the rigs kept operating. More than 100 persons are working at each rig, whose activity ahs become tough due to security conditions. But due to the increased obligation to boost output ceiling by 13 mcm/d by the end of the calendar year and in light of gas imbalance, we didn’t stop working. Meanwhile, POGC’s gas security responsibility may be unique. Therefore, all our efforts were aimed at preventing any halt in operations. In fact, the infill wells were aimed at preserving gas production and compensating gas imbalance, as a mission assigned to POGC.
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