Pars Oil & Gas to spend $16b on field development
Pars Oil & Gas Company to invest $16b on South Pars field development
Mohammadreza Zahiri, managing director of Pars Oil and Gas Company has announced plans to invest $16 billion for the development of the South Pars gas field over the next ten months.
The majority of the funds will come from domestic sources.
Last week, an executive of another Iranian oil company announced that the country’s gas output capacity would increase by 100 million cubic metres per day over the 10 month period.
“According to the plans the country’s gas production capacity will rise by 100 million cubic meters per day by the end of the year, a large part of which will be produced in South Pars phases such as 12, 15, and 16,” said National Iranian Oil Company (NIOC) Managing Director Ahmad Qalebani.
Iran, which sits on the world's second largest natural gas reserves after Russia, is making efforts to attract more foreign and domestic investment, especially in South Pars, in order to boost gas production.
The South Pars/North Dome field is a gas field located in the Persian Gulf. It is the world’s largest gas field and is shared by Iran and Qatar. The field’s recoverable gas reserves are estimated to be equivalent to 215 billion barrels of oil. It also holds about 16 billion barrels of recoverable condensate.
The South Pars field, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of total world reserves.