TEHRAN-- China is set to cooperate with Iran on the phase 11 development of the South Pars gas field in the Persian Gulf.
According to Iran’s Petroenergy Information Network (Shana), an Iranian delegation headed by Seifollah Jashnaz, managing director of NIOC, will sign the contract in Beijing.
Total has had a memorandum of understanding for phase 11, but NIOC has opted to seek new partners due to continuing delay in the project’s progress.
NIOC aims to produce 2 bcm/d of gas and 70/000 b/d of condensate from phase 11, for use in the Pars LNG program.
Another European oil company, StatoilHydro, will start gas production later this year from the third of three phases it has been developing at South Pars, Shana claimed. It added that StatoilHydro was negotiating a service contract to give it operating status for a period before handing control of the project to Iran.
The company’s Middle East E&P vice president Torgeir Kydland was quoted as saying that when all the facilities were on line, total production from the three phases would rise to 3 bcf/d from 2 bcf/d currently. StatoilHydro signed a deal to start work on the field in 2002.
Iranian companies are managing South Pars phases 17 and 18, 105 km (65.2 mi) offshore, where two platforms are currently undergoing placement in around 75 m (246 ft) of water. The first steel jacket, 81 m (265 ft) tall, has been set down, with topsides mating set to follow shortly. Later this month, the second jacket will be installed.
China set for leading role in South Pars 11
China is set to cooperate with Iran on the phase 11 development of the South Pars gas field in the Persian Gulf.