Iran News ...


5/19/03

Iran signs drilling contract for South Pars with Japanese company

A contract to drill in South Pars gas field was signed in Tehran on Sunday between National Iranian Oil Company (NIOC) and Japan Drilling Corporation (JDC), IRNA reported.

Oil Minister Bijan Namdar Zanganeh, several high ranking Oil Ministry officials and other domestic and foreign oil experts attend the signing ceremony.

The JDC was the winner of the five-year contact in a tender offering. The contract could be extended for another five years on the consent of both sides.

South Pars gas field is specially important to the country due to its joint sharing and exploitation arrangement with the Persian Gulf country of Qatar.

Any expeditious implementation of the field's abundant gas reserves is important for Iran's domestic use and as well as for exports.

The value of contract is close to dlrs 182 million and the Japanese concern is bound to enter into a joint partnership with an Iranian company to implement the project. Any agreement should be registered in the Kish Free Trade Zone.

The company is also required to use a particular Japanese-made drilling equipment which has already been used in phases 1, 2 and 3 of the South Pars gas field.

The first phase of the development project for South Pars gas field in the Persian Gulf which will go on stream by September is expected to yield 25 million cubic meters of gas and 40,000 barrels of gas derivatives daily.

Announcing this, Deputy Minister of Oil for Planning Affairs Akbar Torkan said at the 11th Mechanical Engineering Conference on Tuesday that Petropars, a subsidiary of National Iranian Oil Company, is responsible for the first phase of South Pars project with Iranian experts taking charge of 63 percent of total operations.

The official said South Pars stretches over an area of 10,000 square kilometers, of which 3,700 square kilometers is in Iranian territorial waters, accounting for 60 percent of the field's total output.

Iran has 18 percent of the world's gas reserves, nine percent of which is located in South Pars, said the official.

Elaborating on the project, Torkan said the first phase envisions developing offshore and onshore projects.

He said that pipelines extending 105 kilometers on the seabed will have to be laid to transfer products extracted from the field. Of this, he pointed out, 76 kilometers have already been laid.

He said development work on South Pars is expected to be completed in 28 phases, of which legislation for 18 phases have so far been passed by the Majlis.

The second and third phases of the project came on stream last year.

... Payvand News - 5/19/03 ... --



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