“Iran is now extracting around 600 million cubic meters per day of natural gas from the field, twice the amount five years ago,” Mohammad Meshkinfam said.

“Except for Phase 11, other phases including 13, 14, 22, and 24 have come on stream,” the official added.

He noted that the company has built 13 refineries, drilled 267 wells, and laid 3,500 kilometers of subsea pipes.

According to Meshkinfam, the field’s daily output will soar to 850 million cubic meters of natural gas, one million barrels of condensates, 10 million tons of LPG and 5,000 tons of sulfur when it is in full operation.

South Pars, which is located in the Persian Gulf and shared between Iran and Qatar, is the world’s largest gas reserve. It holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of condensates.

The megaproject is being developed in 24 phases.

According to an estimate, Iran’s recoverable gas stands at 10 trillion cubic meters and Qatar’s is estimated to be over 25 trillion cubic meters.

Meshkinfam had earlier said that “more than $70 billion have been spent on the gas project over the last 15 years and the field requires between $20 billion and $30 billion in additional spending to become fully operational.”

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Construction of the refinery started in 2006, but the project was delayed as the result of some  financial limitation due to the sanctions against Iran.

Planned to have a total crude oil processing capacity of 360,000 barrels per day, Persian Gulf Star is projected to be complete by the end of the next Iranian calendar year 1397 (March 20, 2019).

The facility is owned by Oil, Gas and Petrochemical Investment Company (49%), Oil Industry Pension Fund (33.1%) and National Iranian Oil Refining and Distribution Company (NIORDC) (17.9%).

The project is estimated to be completed at a cost of approximately $3.4bn.

Once fully operational, the refinery will add over 36 million liters of Euro-4 and Euro-5 quality gasoline to the country’s gasoline production capacity to increase it to 100 million liters per day.

When the first phase of Persian Gulf Star Refinery was inaugurated by President Hassan Rouhani on April 30, 2017, Iran said it is now self-sufficient in gasoline production.

“By inaugurating the first phase of this refinery an old dream came true. We are self-sufficient in gasoline production and in near future we will be able to export,” Rouhani said in the inaugural ceremony of the first phase.

Second phase of the refinery is scheduled to be complete by the end of the current Iranian calendar year (March 20, 2018) adding 12 million liters of Euro 5 gasoline to Iran’s capacity of the product, Alireza Sadeq-Abadi, the managing director of National Iranian Oil Refining and Distribution Company (NIORDC), announced in the inaugural ceremony of the distillation unit of the second phase on February 14.

In mid-December last year, Oil Minister Bijan Namdar Zanganeh said Iran will reach a stable status in gasoline production once the second phase of Persian Gulf Star Refinery comes on stream.

Bringing self-sufficiency for the country in terms of gasoline production, once fully operational, the Middle East’s largest processing facility for gas condensate will also play a big role to turn Iran into an exporter of gasoline.

The big job has already started as the first shipment of Euro 5 gasoline produced by Persian Gulf Star Refinery was delivered to Shahid Rajaee port in south of the country in early December last year.

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Mohammad Meshkinfam noted that Iran extracted an average of 550 million cubic meters of natural gas from the field, which is shared with Qatar, during this winter, adding by late March, gas recovery from Platform A of Phase 14 of the gas field will reach 14.2 million cubic meters per day, Shana reported.

Speaking during a visit to onshore refinery facilities of the South Pars gas field in the Persian Gulf, the POGC chief said that Platform C of the same phase will begin operation within three months following the inauguration of the first platform.

Platforms of phases 13, 22, 23 and 24 of the giant gas field, each with a gas extraction capacity of 14.2 million cubic meters, will go on stream in the year to mid-March 2019.

The post Iran’s South Pars’ sour gas output to increase 56 mcmd appeared first on IRAN This Way.

The country is planning to send the layer’s 5th oil consignment in the coming days, said Fardin Asadi, operator of SPOL’s development project.

He said a 500,000-barrel crude oil consignment is being loaded for export in the current week.

He said production from the layer’s 7 wells has been planned to maximize production life of the reserves while maximizing production.

Asadi further said that injection operations will begin by March 2018 in order to stabilize reservoir pressure of the layer.

The layer is estimated to roughly hold over 6 billion barrels of oil with over 10% recovery rate that can be enhanced to beyond 35% by adopting EOR and IOR techniques.

More exact estimation of the layer needs spudding more exploration wells, he said.

The post Iran’s South Pars Gas Output Crosses 2.5m Barrels appeared first on IRAN This Way.

Manouchehri has a brilliant background in companies like Petropars and Iranian Offshore Engineering and Construction Company (IOEC), both involved in the development of South Pars gas field.

He is now serving as the deputy managing director of National Iranian Oil Company (NIOC) for development and engineering.
The exclusive interview he has granted to “Iran Petroleum” is as follows:

Q: How do you see the future of South Pars gas field?
A: Except for Phase 11, other phases of South Pars are forecast to have been completed within two years or at most 30 months. Phase 11 development is expected to be finished in four years. South Pars will definitely play a major role in the supply of gas and condensate in the country. After remaining phases are developed in South Pars, gas condensate production in this jointly owned field will reach 1 mb/d.
Q: Could you name the future challenges to the South Pars development?
A: The pressure fall-off in gas and gas condensate will be one of the main challenges in this field.

Q: What could be done to cope with this problem?
A: Using pressure booster compressors could be an effective measure. Furthermore, reservoir studies must be carried out more seriously and more comprehensively. Changes in the condition and behavior of reservoir and forecasting future conditions are also important. Other layers of South Pars should be also studied. Transferring gas from adjoining fields in a way to avoid a quick fall-off in the gas pressure and volume of gas condensate production is also another measure. Pressure fall-off is a natural phenomenon, but we have to try to lengthen the production plan.

Q: So South Pars will need more efforts and activities in the future.
A: That’s true. Drilling in this joint field will be based on studies in the future. The type of drilling may change. Moreover, there is much sensitivity with regard to the jointly owned parts of this field. Since the Qatari side is recovering gas along with us we will naturally see more problems.

Q: Do you think there is technology for preserving production in Iran?
A: This technology is accessible and naturally in the future we will be able to increase the share of Iranian companies in implementing such projects. The more we go ahead, the higher gas and gas condensation will cost, and we have to recognize that production costs in South Pars will go up.

Q: How much does production cost in South Pars now?
A: Implementation of each phase of South Pars under the current circumstances is estimated around $2.5 billion and our production costs stand at two or three percent of the value of investment. It is a low figure, but will increase in the future.

Q: How much do you think this increase will be?
A: It depends on the conditions of upcoming years and the amount of additional investment. But undoubtedly the costs of installations will increase. Therefore, we cannot announce any accurate figure. However, it will most probably be twice.

Q: Are you happy with the current management of South Pars output maintenance?
A: Regarding the maintenance of onshore facilities, NIOC is largely experienced and we have no serious problem in this regard. However, we need to improve standards of production, reduce flare gases and minimize environmental damage. For this purpose, we need investment. Moreover, in some refineries we need to implement a complementary procedure to eliminate flare gas.

Q: What about offshore maintenance?
A: In this sector we need to pay more attention and apply higher standards because in the offshore sector our operation models do not fully comply with international conditions. At the beginning, our platforms were designed to be unmanned, but they are manned now. Therefore, we have to take into account this fact that such facilities are exposed to more degradation and more difficult to accede. We have to run South Pars which has a 30-year to 50-year future.

Q: How do you assess South Pars’ role in empowering domestic contractors?
A: Iranian contractors became international thanks to South Pars. The fact is that South Pars has been instrumental in upgrading domestic industry and project management mechanism, development of contracting system and engineering services companies. In the past we often heard that Isfahan Steel Mill was a good model in terms of concrete pouring and molding. But South Pars has played a major role in developing EPC knowhow, petroleum engineering, refinery construction and equipment manufacturing. We cannot say that all this happened first in South Pars, but given the scale of work, many industrial plants, factories and contracting companies emerged and grew under the aegis of South Pars and then they spread across the country. I can say that South Pars improved technical standards and raised the expectations of managers with regard to the quality of work. Moreover, a valuable interaction was created between Iranian and international companies at different levels of activity.
In fact, after implementation of phases 1 to 8 of South Pars by Iranian and foreign companies, the top role in phases 12 to 16 was assigned to Iranian companies. Although we had problems with some of these projects due to high costs and delays, Iranian companies finally proved their capabilities in drilling, offshore and onshore operations and pipelaying.

Q: In case you are asked to name several Iranian companies that have been empowered through their activities in South Pars, which companies will you name?
A: Undoubtedly Petropars is at the top of them. This company managed to play the role of a developer. OIEC (Oil Industries Engineering and Construction Company) as an EPC company, IOEC in offshore EPC and some private companies are also among them. Sadra has also shown good growth although it delayed some of thes projects due to domestic problems and has so far failed to deliver platforms for phases 13, 14 and 22-24. Nevertheless, generally speaking, Iranian companies have fared well in the development of South Pars.

Q: Would you please cite some of the measures taken first in South Pars?
A: Drilling, deepwater drilling, subsea pipelaying, and project macro-management.

Q: Once South Pars phases have been completed, provided that unbridled consumption is contained, which role could Iran play in the gas market?
A: After completing South Pars phase development, we will have the chance to invest in LNG sector. Of course, it is already possible. [But] then we can enhance our gas exports to the region.

Q: What have been the challenges of South Pars in recent years?
A: Investment, project mismanagement, supply of equipment and commodities were among these challenges. But these problems have been resolved after the implementation of the JCPOA and the [ensuing] lifting of sanctions.

Q: How do you assess cooperation with foreign companies in the development of South Pars?
A: During years of sanctions, NIOC and its staff demonstrated their capabilities in developing oil and gas fields, particularly the jointly owned South Pars field. During this period, phases 12, 15, 16, 17, 18, 19, 20 and 21 were developed. Gas production capacity in South Pars currently stands at more than 480 mcm/d, which is expected to reach 580 mcm/d early next [calendar] year. As far as recovery from South Pars is concerned we have to continue producing gas and gas condensate more smartly. In order to have access to cutting edge technologies we need to cooperate with service companies and international oil companies (IOCs) so that they would bring capital, technology and management into the country.

Q: You were manager in both Petropars and IOEC and you have experience of offshore and onshore sectors. How do you assess your own performance at South Pars?
A: I thank God for my contribution to the development of these fields from the very beginning. I joined the project when Phase 1 was in its final day of development; I managed development of phases 6 to 8. I also managed development of Phase 12 half way, as I was CEO of Petropars and project manager. When I left this company all contracts had already been signed. The contract for Phase 19 of South Pars was signed when I was at Petropars. Furthermore, when I was IOEC manager, seven to eight platforms were finally completed and installed.

Q: Would you please name five influential people in the South Pars development?
A: Certainly Mr. Zangeneh (minister of petroleum) will occupy the ranks one to three. He is followed by Misters [Akbar] Torkan and [Mehdi] Mirmoezzi. But Mr. Zangeneh was the pioneer of South Pars and he was the one who brought about fundamental changes in the petroleum industry.

By Roya Khaleqi/ Courtesy of Iran Petroleum

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Meshkinfam said that since its operation in 1377 (1998-99) until end of (March 19, 2016) the last Iranian year of 1394 (2015-16), South Pars gas field’s total production capacity stood at about 879 billion cubic meters, earning the country 378 billion dollars.

He said gas production capacity of South Pars was about 285 million cubic meters a day in 1392 (2013-14) which will soon increase to 515 cubic meters a day once parts of phase 21 of South parts come on stream.

He said that gas production from South Pars will hit record high this year and the field’s output capacity will reach 140 million cubic meters by March 19, 2017.

‘Up to so far, 95 million cubic meters of the figure has been met.’

Meshkinfam said that 91 billion dollars investment should be made for development of all phases of South Pars : 31 billion dollars in project for development of the operational phases and 61 billion dollars for the phases under construction.

Some 21 billion dollars out of the said sum should be invested in South Pars by next two years, he said.

The official said the field’s earnings are four times the sum of investment.

‘In 1394 (2015-16), about 131 billion cubic meters of gas were extracted and the value of the gas and related products produced was 46 billion dollars. The budget proposed for South Pars in 1395 (2016-17) was about six billion dollars and within nine months since start of this Iranian year (March 20), about for billion dollars investment was made.’

By end of this year, all phases of South Pars, except phase 11, will be completed and thus far, 10 refineries have been operational in South Pars and three more are to be built.

The POGC Chief said 258 out of 415 wells and 25 out of 40 platforms due to be operational in South Pars.

He predicted that with completion of a number of half-finished phases, gas production in South Pars will increase between 540 and 550 billion cubic meters by end of this year.

‘Now, daily 600,000 barrels of gas condensates are produced in South Pars and the figure will reach 680,000 barrels by end of this year.’

Elsewhere in the press conference, Meshkinfam said a French company is now serving as international consultant studying pressure drop in South Pars wells and based on the outcome of the study, operations will start to design and construct pressure drop platforms.

‘A contract, that will be signed with French Total for development of phase 11 of South Pars gas field, envisions construction of platforms to check the pressure drop.’

He said Total is going to transfer know-how with construction of the pressure drop platforms to Iran.

‘A model Total uses to check pressure drop in phase one is going to be followed and used in development of other phases.’

He noted that Total envoys have visited the platform construction companies in Iran.

He said Total is to be rewarded for partnership in development of phase 11.

‘The award is envisaged for 20 years in proportion with increase or decrease in the production.’

On conclusion of deal with Indians for development of Farzad B gas field, he said that National Iranian Oil Company follows up the matter.

The post The new record registered in the South Pars gas production appeared first on IRAN This Way.

Total will lead a consortium, which will also include China National Petroleum Corporation (CNPC) and Iran’s Petropars, to develop Phase 11 of the South Pars field under a 20-year contract worth $4.8 billion (€4.3 billion), AFP reported.

The project will eventually supply 50.9 million cubic meters of gas per day into Iran’s national grid, and marks a breakthrough in the Oil Ministry’s efforts to attract Western investment and know-how to improve its outdated energy infrastructure.

The companies involved signed a memorandum of understanding in Tehran on Tuesday, and the final agreement will be inked early next year, said head of Total’s Middle East exploration and production, Stephane Michel.

It is the first deal of its kind since most international sanctions on Iran were lifted in January under a nuclear deal with world powers.

Iran’s Deputy Oil Minister Amir Hossein Zamani-Nia said another major deal with a European company would be signed “in two to three weeks”.

Tuesday’s signing represents Total’s return to Iran, which has the largest gas reserves and fourth-largest oil reserves in the world.

Total helped develop phases two and three of South Pars, but effectively left Iran four years ago when France joined European Union partners in imposing sanctions, including an oil embargo. “We’re the first Western major to return to Iran. We’re very happy,” Total Chairman Patrick Pouyanne told AFP.

“It’s important because it’s always when we innovate and when we are first that we score points,” he added.

Iran’s Oil Minister Bijan Namdar Zanganeh thanked Total and CNPC for working with Iran despite ‘difficult conditions’.

“I hope the international companies that are still hesitating to come to Iran will be encouraged to take the leap,” he said.

The South Pars field in the heart of the Persian Gulf is shared by Iran and Qatar, and contains some 14 trillion cubic meters of gas or eight percent of the world’s known reserves.

“It’s a field we know well because we produce on the Qatar side,” Pouyanne said.

He said there would be none of the banking problems that have bedeviled recent trade deals with Iran, because Total would use its own cash.

Despite the nuclear deal, the United States has maintained a raft of other sanctions, leaving global banks fearful they could still face massive fines for doing business with the Islamic Republic.

Nonetheless, Tehran has been inundated by trade delegations from Europe in recent months. France has led the way, with major deals already lined up for Peugeot and Renault.

Total first signed an agreement in 2004 to develop Phase 11 and a gas plant at South Pars, but it was never finalized.

Under the new deal, Total will control 50.1 percent of the consortium, with CNPC taking a 30 percent stake and Petropars 19.9 percent.

The first phase will cost around $2 billion and consist of 30 wells and two well-head platforms connected to existing onshore treatment facilities.

Iranian officials announced last month that they would invite the first tenders for oil projects within two months and that foreign firms would be allowed to take lead roles.

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The 4.8 billion-dollar deal signed under the Islamic Republic’s new oil-contract framework is the first major agreement reached between Tehran and foreign energy companies following the implementation of the nuclear deal, known as the Joint Comprehensive Plan of Action.

Present at the signing ceremony were Iran’s Petroleum Minister Bijan Zangeneh, Ali Kardor Managing Director of National Iranian Oil Company (NIOC) as well as Stéphane Michel Total’s Senior Vice President Middle East and North Africa and also Zhou Zhang Ting from China‘s National Petroleum Corporation Middle East office.

The South Pars field, which is shared by Iran and Qatar in the Persian Gulf, contains 14,000 billion cubic meters of gas, 8% of the world’s known reserves.

Phase 11 of the South Pars gas field has the capacity to produce two billion cubic feet of natural gas every day.

The production is expected to be started in 40 months following finalization of the deal.

The final agreement is expected to be signed in early 2017.

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