OEOC Outlines Costs of Developing SP Fields

OEOC Outlines Costs of Developing SP Fields OEOC Outlines Costs of Developing SP Fields

Completion of each phase of the South Pars field in the Persian Gulf costs between $3 billion to $5 billion, said the managing director of Oil Exploration Operations Co. (OEOC), Fars news agency reported.

"Development of South Pars phases should be carried out according to the budget," Mohammad Reza Zahiri said, adding that the development of phase 11 is now not a priority.

South Pars is the world's largest gas field, shared between 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, which measures 6,000 square kilometers. Exploration of oil fields is a difficult process with insignificant profit and the provision of exploration machinery is a tough task as well, according to Zahiri.

Deputy oil minister Roknoddin Javadi also said a new pipeline will be laid to connect refineries in SP phases 15 and 16 to gas platforms in phases 17 and 18 to accelerate the production of sweet gas.

With parts of phases 12, 15, and 18 coming on stream before winter, total gas production in the South Pars field will amount to 100 million cubic meters. Phase 12 refineries are expected to join the 5th national gas pipeline in the near future.

Javadi visited the South Pars field on Thursday to inspect the development of phases 12, 17 and 18. Phase 12 is South Pars’ biggest phase in terms of volume of activities as well as investment and production level. The field is estimated to contain 14 trillion cubic meters of gas and 18 billion barrels of gas condensate.