BAKU, Azerbaijan, March 8. Iran will leverage the potential of its private sector in the pressure enhancement project at the South Pars gas field (Northern Dome in Qatar), a joint gas field of Iran with Qatar, said the country’s Minister of Petroleum, 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 noted that the agreements signed between National Iranian Oil Company (NIOC) and four contracting companies—Oil Industries Engineering and Construction Company (OIEC), MAPNA Group, Khatam-al Anbiya Construction Headquarters, and Petropars—will involve significant collaboration with the private sector.
He also mentioned that the seven pressure hubs to be established at South Pars will require approximately $2.5 billion for each hub, and it is expected that the field’s revenue from production will increase by $780 billion by 2057.
"Each of the seven hubs will use 56 powerful ‘SGT700’ compressors. The majority of these compressors will be supplied locally, with some assistance from foreign partners," Paknejad added.
He further noted that a total of 420,000 tons of equipment and facilities will be utilized in the South Pars gas field, and in recent years, approximately 200,000 tons of equipment and facilities have already been installed. Iran has previously produced platforms weighing 3,000 to 3,500 tons, but under the new project, platforms weighing 7,000 to 8,000 tons are planned to be manufactured.
Moreover, contracts worth $17 billion were signed between Iran's National Oil Company and local companies to increase pressure at the South Pars gas field.
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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