The contract for the development of the second phase of the oil layer of the South Pars joint field was signed within the framework of the new upstream contract model.
According to Shana, the contract for the development of the second phase of the South Pars oil layer was signed within the framework of new upstream contracts on Tuesday afternoon, March 15, 2022 in a ceremony with Minister of Petroleum Javad Oji in attendance in Shahid Beheshti Hall of the Ministry of Petroleum.
The technical, financial and contract negotiations had already started in order to develop the second phase of the field. The planning in this regard was done seriously in the last few months and the contract was finalized in the end.
The contract for the development of this field has been negotiated for 20 years within the framework of a new upstream contract model. The contract party is obliged to provide all the financial resources required to implement the project, including direct capital costs, indirect costs and operating costs.
The project, accordingly, entails updating and modifying the existing processing vessel and platform, overhauling existing wells, new wells including production and water injection and appraisal wells, constructing an oil discharge and loading system, and strengthening the water injection system.
In addition to updating the reservoir models using new data analysis, new wells will be drilled using horizontal drilling technology and tools for water injection and production in the implementation of this contract. As a further matter, a novel discharge and loading system will be installed instead of the existing one.
The oil layer of the South Pars joint field, with a volume of about 900 million barrels of oil, is located in the Persian Gulf, approximately 90 km off the coast of Iran adjacent to the boundary with Qatar. The field is a side extension of the Al-Shaheen Oil Field in Qatar. South Pars proven oil layer includes Sarvak, Kazhdomi, Upper Darian (main reservoir capacity) and Lower Darian formations.
The first phase of the development of this field was put into operation in 2016. In this phase, a wellhead platform and a floating production storage and offloading (FPSO) were developed and seven wells were drilled, which resulted in the production of a field with a discharge of about 25,000 barrels per day.
*Development of South Pars Oil Layer Attracts Foreign Capital
At the signing ceremony of the contract for the development of the second phase of the South Pars oil field, CEO of the National Iranian Oil Company Mohsen Khojasteh-Mehr said: “The situation of another common field in this contract is determined. Suitable conditions are provided for attracting foreign capital and creating direct and indirect employment and mobility in many industries related to the development of the oil and gas industry”.
“As a further matter, the engagement of one of the most powerful upstream companies in the country, along with the main contractor, in the project has provided suitable conditions for the transfer of knowledge and technology as well as localization of some technologies required by the oil industry in the upstream and offshore sector, which it is hoped will be achieved over time and with the implementation of the project. " he added.
”Immediately after the signing of this contract, the necessary measures to enforce the contract will be on the agenda of the National Iranian Oil Company. With serious follow-up, we hope that this contract will be implemented in the next few months and that we will be able to start executive operations in one of the most important joint fields of the country,” the CEO of the National Iranian Oil Company also said regarding the continuation of the project implementation.