BAKU, Azerbaijan, March 8. Iran needs an average of $19 billion annually to increase its daily gas production to 1.34 bcm, said the country's Minister of Oil, Mohsen Paknejad, Trend reports.
Addressing an event in Tehran today to mark the signing of agreements to increase pressure at Iran's South Pars gas field, Paknejad explained that experts estimate that a total of about $75 billion is required to maintain and increase gas production.
''Of this amount, $53 billion would be spent on the development of new gas fields, while $22 billion is earmarked for projects related to maintaining current production levels,'' he added.
He emphasized that securing this amount of funding would require precise program management and optimal utilization of the country’s financial sector capabilities. The Ministry of Oil is making every effort to tap into Iran's National Development Fund, the Energy Industry Investment Fund, and other sources to meet the financing needs.
Meanwhile, on the same day, the Iranian National Oil Company signed agreements worth $17 billion with local companies for enhancing pressure at the South Pars gas field, a joint venture with Qatar.
The South Pars gas field (called North Dome in Qatar) is a joint gas field of 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’s development of South Pars consists of 24 phases, with production starting in 2002. Currently, Iran produces around 700 million cubic meters of gas per day from the field. To date, Iran has invested approximately $90 billion in its development.
About 33 percent of the recoverable gas reserves from South Pars belong to Iran. While Iran has developed its portion independently, the Qatari side has primarily relied on foreign companies for development.
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