TEHRAN, Iran – National Iranian Oil Company (NIOC) has awarded a $500-million contract for the development, production and increase of oil production from the South Pars gas field’s oil layer in the Persian Gulf.
According to new service Shana, the work will be performed an unnamed foreign company and Iranian Offshore Engineering and Construction Company.
NIOC CEO Mohsen KhojastehMehr said: “For the first time, horizontal drilling with new foreign technologies and water injection will be used as one of the methods of production enhancement."
He added: “The situation of the South Pars oil layers is such that we cannot exploit them by conventional drilling that we have in the country, therefore, this is one of the special advantages of this contract that in addition to foreign investment, technology transfer will also be made possible.”
The contract for development of the second phase of the oil layer was finalized for 20 years within the framework of Iran’s new upstream contract model, with the developer committed to supply the financial means for the project.
Work includes upgrading and modifying the existing processing vessel and platform, overhauls of existing wells, drilling new wells including producers and water injectors, construction of oil discharge and loading systems and strengthening of the water injection system.
In addition, a new unloading and loading system will be installed.
The oil layer of South Pars (around 900 MMbbl) is an extension of the Al-Shahin field in Qatari waters. Oil is present in the Sarvak, Kazhdomi, Upper Darian and Lower Darian formations.
The first-phase development of the oil layer, which came onstream in 2016, comprised a wellhead platform and FPSO with seven wells, producing around 25,000 b/d.