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Condensate Export to East Asia in 2 Weeks

Condensate Export to East Asia in 2 WeeksCondensate Export to East Asia in 2 Weeks

Iran will start the export of gas condensates produced in phases 17 and 18 of South Pars Gas Field to South Korea in the next two weeks, director of the phases said on Wednesday.

"Fortunately, circumstances are normalizing again after the implementation of the nuclear deal and as a result of the removal of anti-Iranian sanctions, which had restricted the import of equipment needed by SP for years," Hassan Bouyeri was quoted as saying by Shana.

The official said earlier that the two phases are already operational, producing close to 30 million cubic meters of natural gas per day. However, all offshore and onshore facilities of the two phases will become completed by June.

The phases are designed to produce 50 mcm/d of gas, 80,000 barrels of condensates and 400 tons of sulfur.

Oil Minister Bijan Namdar Zanganeh said this month in a statement that phases 17 and 18 are yet to be officially inaugurated because of not reaching optimal production capacity.

Announcing that in the last two weeks 90 foreign companies' representatives have visited the site, Bouyeri said the new atmosphere accelerates the implementation of SP's phases 17 and 18.

"To complete the phases, 44 wells must be drilled, of which 22 are already complete and operational and the rest have made 90% progress," he explained, adding that the remaining wells will go on stream in less than two months.

The official noted that at present two primary rigs are operating in phases 17 and 18, and two other rigs, which are 80% ready, have been replaced with the site's underway rigs. "According to the timeframe, the replaced rigs will be installed by June and marine operations are expected to be finished before the end of December."

WorleyParsons, a leading international engineering, procurement and construction company, has provided nearly 60% of equipment and machinery in the phases, while Iranian contractors have carried out around two-thirds of all operations.

Currently, an Iranian consortium is implementing the phases that include Industrial Development and Renovation Organization of Iran as the leading party that holds 48% of the project, Oil Industries Engineering and Construction, and Iranian Offshore Engineering and Construction Company that is the project's contractor for marine section.

About $5.7 billion so far have been invested in the two phases, with total investments projected to reach $6.2 billion.

Mehdi Yousefi, managing director of Pars Special Economic Energy Zone, earlier said the export of gas condensates from the zone to 29 countries witnessed a 64% growth in the Iranian month ending January 20, compared with last year’s corresponding period.

“More than 1.45 million tons of gas products, worth over $589 million, were exported from the PSEEZ’s customs,” he added.

Financialtribune.com