SP Oil Layer Drilling Completed

SP Oil Layer Drilling CompletedSP Oil Layer Drilling Completed

The drilling process of an oil layer of the giant South Pars Gas Field has drawn to a close, said managing director of PetroIran Development Company.

"We are currently in the well completion and commissioning stages, which will conclude over the next two months," Roham Qasemi was quoted as saying by Moj News Agency.

Qasemi noted that the construction of the project's jacket and platform was completed by late May and are now installed in the Persian Gulf, adding that the wells are projected to become fully operational in mid-2016 since the floating production, storage and offloading unit is not ready yet.

"The construction of FPSO unit, which started six months ago, will hopefully finish by this time next year," he added.

The development project of the South Pars oil layer will be carried out in two phases.  In April, director of the South Pars oil layers project, Alireza Zeighami, stated that seven wells had been spud-drilled in the oil layer, and 20,000 to 35,000 barrels of oil are expected to be recovered in the first phase.

"After assessing the progress and studying the field's production behavior, the second phase will also be launched if the project shows economic promise," he added.

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. It is estimated to hold 7 billion barrels of oil.

However, Iran is lagging behind Qatar in exploiting oil from the Persian Gulf reserves due to a lack of advanced technology and sufficient budget. Add to that the more difficult task of reaching the deep underwater oil layers in the South Pars compared to drawing natural gas from the region's hydrocarbon reserves.

SP Gas Field has a capacity of producing 820 million cubic meters and 1 mcm of natural gas and gas condensates per day, respectively.