News ID: 257772
Published: 0247 GMT August 24, 2019

Iranian firm to develop South Pars oil layer

Iranian firm to develop South Pars oil layer

The National Iranian Oil Company (NIOC) is set to grant the development project of the South Pars oil layer, in the Persian Gulf, to a domestic company, a senior official said.

“The cooperation will be under Iran’s new model of oil contracts, known as Iran Petroleum Contract [IPC],” NIOC Director for Planning Karim Zobeidi said, reported Mehr News Agency.

“Negotiations are also underway with domestic companies for the development of other fields such as Yaran and Sohrab,” he added.

Noting that NIOC has already signed IPC-based contracts with domestic contractors for developing and increase the recovery factor of various oil fields such as Cheshmeh-Khosh, West Paydar and East Paydar, Sepehr, and Jofair, he said, “with these contracts going operational the production capacity of the country's oil fields will increase significantly.”

Iran introduced its “Iran Petroleum Contract” in 2016 and replaced it with buyback models in order to attract more foreign investors into the country’s oil and gas sectors.

In January, managing director of Pars Oil and Gas Company (POGC) which is in charge of developing Iran’s South Pars gas field in the Persian Gulf, had said that this company is in talks with a number of Iranian companies on the development of the oil layer of the field.

Making the remarks in a press conference, Mohammad Meshkinfam said the negotiations were confidential.

South Pars is the world’s largest gas field, but it also has significant oil reserves which Iran shares with Qatar across from the Persian Gulf.

Iran started pumping oil from the oil layer in March 2017 with the initial production of 5,000 barrels per day (bpd) which currently stands at 25,000 bpd, according to Meshkinfam.

The development of South Pars oil layer is still at the pilot phase, but the country sees positive prospects for 150,000 bpd of recovery in the currently producing reservoir.

Officials have said the development of the layer is a complex process requiring integrated development.

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