TEHRAN, April 27 (Mehr News Agency) -- The executive director of the South Pars Special Economic Energy Zone Organization said here on Thursday that negotiations with European banks for investment in Assaluyeh have begun.
"Since 1999 to the present day, more than 9 trillion rials (about $974 million) has been spent for the South Pars special economic zone," Abdol-Jalil Razavi stated.
He said that Iranian calendar year 1385 (ended March 20, 2006) was a busy one for the South Pars special zone and 25 projects were completed.
Some 3.5 trillion rials (about $378 million) was allocated to the South Pars zone during Iranian calendar year 1385, and all of the funds were spent for the designated purposes, he added.
Razavi cited the addition of the second site of the South Pars Special Economic Energy Zone, covering 16,000 hectares, as one of the important projects of the past year, saying, "Thus, the land area of the South Pars zone will be expanded from 14,000 to 30,000 hectares."
The construction of 14 gas refinery units and three LNG production units and the establishment of the Pars International University are some of the most important projects that will be carried out at the second site, he explained.
Commenting on foreign investment, he said, "As a result of negotiations with some foreign institutions such as European banks, in the coming year 3.5 trillion rials (about $378 million) will be invested in Assaluyeh, which is twice the figure for the previous year."
The field's output before the commencement of development plan 11 years ago ranged from 120,000 to 130,000 bpd, added the project manager Mohammad-Hossein Bakhodaii.
Hampered by bad weather and sea conditions in the past year, the remaining operations will end soon, he vowed.
Due to financial problems and modifications, the value of the project amounted to $216 million.
Abuzar oilfield is located in the northwest of the Kharg Island in the Persian Gulf.
The field will produce 30 thousand barrels daily after its exploitation by the end of current Iranian year (to end March 20).
The project's schedule is to drill three new wells and to do the work over operations on another well. To drill a gas injection well for collecting associated gas is on the project's agenda.
The project is one of the Iranian Central Oil Fields Company's 16 development plans.
The oilfield's in situ reserve is 530 thousand barrels, of which 270 million barrels is extractable.
The daily production of the oilfield is 30 thousand barrels.
The Khesht oilfield is between Kazrun and Borazjan in southern Fars Province.
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