Pars Oil and Gas Company, as an employer, is close to finalizing an agreement with Nargan Company, as a contractor, to conduct feasibility studies on boosting pressure in the South Pars Gas Field off the Persian Gulf, the managing director of POGC said.
"The contract obliges Nargan Company to provide POGC with the basis of design [BOD] calculations and complete the front end engineering design [FEED], a stage before engineering, procurement and construction operations begin," ILNA also quoted Mohammad Hossein Motejalli as saying.
After gas production peaked in the field, pressure gradually started to decline and production is expected to be as low as 400 million cubic meters in 2032, down 50% compared to the present level, he added.
The official noted that daily output from the giant field is now 750 million cubic meters and will reach 1 billion cubic meters per day by 2024, following which a downtrend will start.
As of 2025, production is expected to fall by 28 mcm/d that is 10 bcm per year, he said, adding that estimates show output will be around 400 mcm/d in 2032, when consumption will exceed 1.5 bcm/d.
"Early studies show that the installation of offshore compressor stations in the field is the only long-term viable option to control pressure reduction," the POGC chief said.
“Contrary to what some may perceive, the field will not be able to produce 750 mcm of gas per day [the current output] forever and the eco-friendly resource should be used as wisely as possible.”
Reports said household gas consumption surpassed 700 mcm/d last winter.
Referring to short-term strategies to postpone pressure reduction, he said the company has started to acidize offshore wells and this should delay the process for a short while, but by 2025, the pressure is expected to decline by 28 mcm per year unless special platforms and compressors are installed.
According to Motejalli, South Pars meets 80% of Iran’s gas needs and a decline in output will create insurmountable problems for households, industries and thermal power stations.
“The more SP’s natural gas output declines, the less condensates, butane and propane will be produced, and this will adversely affect the country’s energy basket,” he said.
Foreign Consultants
The POGC chief noted that domestic firms have never performed such tasks, hence they must draw on foreign consultants’ experiences.
"Gas platforms installed in the field weigh a maximum 2,500 tons and are designed to produce 28 mcm of gas/day. However, the new platforms containing the compressors are estimated to weigh at least 20,000 tons,” he said.
Referring to domestic potential and capability, Motejalli said firms like Petropars, a subsidiary of NIOC, are able to undertake offshore drilling and transfer gas to onshore refineries, but still lack advanced technology to manufacture heavy platforms and compressors.
“Pressure reduction is inevitable. However, other gas fields in the Persian Gulf, including Kish, Ferdowsi and Golshan, might help compensate the loss [but not for long]," he said.
The SP reservoir pressure was higher when the first contract for the field’s development was signed 20 years ago, he recalled.
Excessive domestic demand and Qatar's high gas extraction from the joint field have reduced the pressure to a great extent and a further decline will affect production from operating platforms in the near future.
The field's production (750 mcm/d) has risen by 60% compared to 2013 when output was 280 mcm/d.
"The 11 SP platforms in 2013 have now reached 35," he said, adding that the number of onshore refining units is up 150% - from 20 in 2013 to 55 last year.
POGC oversees the development of major gas fields. Iran has close to 34 trillion cubic meters of natural gas reserves – about 18% of the total global reserves.
South Pars is the world’s largest gas field, shared by Iran and Qatar, covering an area of 3,700 square kilometers of Iran’s territorial waters in the Persian Gulf. It adjoins Qatar’s North Field that measures 6,000 square kilometers.
Nargan is a private company active in engineering, procurement, construction and project management. It has over four decades of experience in designing and developing industrial projects, particularly in the oil, gas and petrochemical sectors.
