BAKU, Azerbaijan, November 13. The National Iranian Oil Company (NIOC) has signed agreements with 4 local companies operating in the oil sector in order to maintain and increase production in the South Pars gas field, Iranian Deputy Oil Minister and CEO of the NIOC Mohsen Khojasteh Mehr said, Trend reports.
However, the deputy minister did not reveal the names of local companies that signed contracts with the National Iranian Oil Company.
Iran shares the ownership of the South Pars gas field with Qatar. Iran's share of the field stands at about 33 percent. The country has been developing the field since 2002, investing a total of about $90 billion in its development. Iran's share of the field is divided into 24 phases, each of which is developed separately. Iran is developing its share of the field through its domestic workforce, while Qatar's part is mostly handled by foreign companies.
Reportedly, Iran currently produces a total of 700 million cubic meters of gas per day from this field.
Khojasteh Mehr noted that in total, 35 wells will be drilled in the South Pars gas field within the framework of the 4 signed contracts. In this regard, $1.17 billion will be spent.
He added that under the contracts, Iranian companies will carry out work related to wells in the South Pars gas field for 3 years. Iran’s Pars Oil and Gas Company (POGC), operating under the National Iranian Oil Company, will supervise the operation process.
The deputy minister also pointed out that entrusting the drilling and commissioning of the mentioned number of wells to local companies will increase gas production and benefit the country's economy on the one hand, and on the other hand will result in the creation of jobs and further increase of professionalism in this field within the country.
According to Khojasteh Mehr, the NIOC intends to soon entrust the drilling and commissioning of more wells in the South Pars gas field to local companies.
The South Pars gas field (called North Dome in Qatar) is a joint gas field between Iran and Qatar. The proven reserves of the South Pars Gas Field are estimated at 51 trillion cubic meters of gas, of which 36 trillion are extractable. Iran's share in the field is 14 trillion cubic meters of gas and 18 billion barrels of gas condensate.
Iran stands second in the world for gas reserves, with about 34 trillion cubic meters of gas. The country’s gas production capacity is reportedly more than 1 billion cubic meters.
On average, Iran currently produces about 259 billion cubic meters of gas annually and more than 800 million cubic meters daily.
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