Offshore Field Development Projects
South Pars
Operator:NIOC (NOC)
Water Depth:70 m / 231 ft
Region:MidEast - Persian Gulf
Country:Iran
Last Updated:Mar 7, 2013    (view update history)
Project Description
The largest gas field in the world, South Pars is located on the Iranian border with Qatar in the Persian Gulf (the Qatari side of the field is referred to as the North Field). The whole field spans 9,700 square kilometers, and the Iranian section, South Pars covers 3,700 square kilometers. Recoverable reserves in South Pars are estimated at 14 trillion cubic meters of natural gas and 18 billion barrels of condensates.

A massive project to bring to fruition, the National Iranian Oil Company has dissected South Pars field development into 24 phases, each coming in at around US $1 billion for development costs. The phases incorporate offshore facilities, pipelines and onshore processing components, as well as exporting units and pipelines. Once complete, South Pars will have ...
The largest gas field in the world, South Pars is located on the Iranian border with Qatar in the Persian Gulf (the Qatari side of the field is referred to as the North Field). The whole field spans 9,700 square kilometers, and the Iranian section, South Pars covers 3,700 square kilometers. Recoverable reserves in South Pars are estimated at 14 trillion cubic meters of natural gas and 18 billion barrels of condensates.

A massive project to bring to fruition, the National Iranian Oil Company has dissected South Pars field development into 24 phases, each coming in at around US $1 billion for development costs. The phases incorporate offshore facilities, pipelines and onshore processing components, as well as exporting units and pipelines. Once complete, South Pars will have a daily production rate of 820 million cubic meters of gas a day.

Phase 1

Awarded to Petronas in January 1998, the first phase of offshore development included the construction and installation of a production platform, a processing platform and a residential platform. Gas and condensate are extracted through 12 wells drilled to a depth of 3,670 meters. Hydrocarbons are transported from the production platform to the processing platform via an 18-inch-diameter subsea pipeline, and then transferred to an onshore refinery via a 32-inch-diameter, 105-kilometer subsea pipeline. The project came on-stream in October 2004 with a daily production rate of 28 MMscm/d.

Phases 2 & 3

In 1997, Total (40%) was awarded the second and third phases of South Pars development, along with partners Gazprom (30%) and Petronas (30%). The upstream development plan called for two offshore gas production platforms located in 70 meters of water and 20 wells, as well as 32-inch-diameter 105-kilometer multiphase pipelines connecting the platforms to the onshore refinery and a 4.5-inch-diameter pipeline for injecting MEG. Offshore production began in December 2001 with development drilling completed by May 2003. The daily production from these phases amounts to 2 billion cubic feet of gas and 80,000 barrels of condensate a day.

Phases 4 & 5

A consortium of Eni (60%), Petronas (20%) and NIOC (20%) was awarded the next two phases of field development for South Pars in July 2000. Upstream development for these phases included the fabrication and installation of two production platforms, drilling of 24 production wells, and installation of two 32-inch-diameter, 100-kilometer subsea pipelines connecting the platforms to the onshore refinery. Offshore production commenced in October 2004, ramping up to a daily production level of 14 MMcm/d.

Phases 6, 7 & 8

In October 2002, StatoilHydro was awarded operatorship of the offshore upstream portion of Phases 6, 7 and 8, which included the construction and installation of three production platforms, the drilling and hook-up of 30 wells, and the installation of three 32-inch-diameter, 105-kilometer subsea pipelines to shore. These phases encompass a daily production rate of 104 MMscm/d of natural gas.

Phases 9 & 10

The next two phases of development were awarded to a JV between South Korea's GS, OIEC and IOEC in September 2002. The upstream portion of the phases includes two offshore gas production platforms, 24 gas wells, and two 32-inch-diameter, 105-kilometer subsea pipelines to shore. Daily production from these phases will reach 50 MMscm/d of natural gas and 80,000 barrels of gas condensate.

Phase 11

The 11th phase of development on South Pars is being implemented to supply sour gas to Pars LNG. Awarded to a JV between Total and Petronas, Phase 11 includes the upstream components of two production platforms, 20 drilling wells, two 32-inch-diameter pipelines to shore, a subsea communication system connecting all phases of development with onshore units, and a gas condensate transfer pipeline and Single Buoy Mooring. This phase of development will produce 2,000 MMscf/d of gas.

Phase 12

In July 2005, Petropars was awarded the 12th phase of South Pars development, which aims to produce 78 MMcm/d of natural gas for transportation to the sixth Iranian Gas Trunk Line and Iran LNG, a nearby gas liquefaction unit. The upstream component of the phase includes three separate platforms equipped for 12 wells each, and a 32-inch-diameter, 135-kilometer subsea pipeline.

Phases 13 & 14

The next two phases of development are being instituted to provide Persian LNG with sour feed gas. The upstream portion of these phases includes the construction and installation of four offshore production platforms, as well as the drilling and hook-up of 44 wells. Two 32-inch-diameter pipelines will transport gas 235 kilometers subsea. Phases 13 and 14 were awarded to a Shell/Repsol joint venture.

Phases 15 & 16

Gharargah Khatam-ol Anbia was awarded Phases 15 and 16, which includes the upstream components of building and installing two production platforms, drilling 24 wells, and laying two 32-inch-diameter, subsea pipelines measuring 100 kilometers each. Additionally, field development plans call for two 4.5-inch-diameter pipelines to be installed to transport MEG 100 kilometers. The production objective for these phases is 50 MMcm/d of natural gas and 80,000 b/d of condensate.

Phases 17 & 18

The next two phases of upstream development require four drilling platforms, 44 wells and two subsea gas pipelines measuring 32 inches in diameter. Daily production from this phase of development is expected to reach 50 MMcm/d of natural gas and 80,000 b/d of condensate. A consortium of IDRO, IOEC and OIEC were awarded the project in July 2007, and the complete (upstream and downstream components) development project is expected to be completed within 52 months.

Phases 19, 20 & 21

The next three phases haven't yet been awarded and are undergoing the bidding process at this time. The upstream field development plan for Phases 19, 20 and 21 includes the construction of five wellhead platforms fitted with a free water knock-out drum (FWKD), test separator, utilities, access bridges and a flare platform. Gas and condensate will be produced from 37 wells and transported to onshore processing units by three 36-inch-diameter subsea pipelines. Production goals for these phases are 80 MMscm/d of treated gas.

Phases 22, 23 & 24

The last three phases of South Pars development are also in the bidding process. The scope of work for the upstream portion of these phases includes the construction and installation of three wellhead platforms equipped with a FWKD, test separator, utilities, access bridges and flare platform, as well as the drilling of 29 production wells and the installation of one 42-inch-diameter subsea pipeline. Expected to produce 75 MMscm/d of treated gas, Phases 22, 23 and 24 concludes the planned field development on South Pars.

Future Development

Although not as large as its gas reserves, South Pars also has proven oil reserves in a joint reservoir with Qatar. Currently, there are two phases of development planned to produce oil from South Pars. The first will have a daily production rate of 35,000 bopd and the second will produce 54,000 bopd. PetroIran was awarded the development project in March 2005.

Additionally, Iran is studying transportation options for the gas produced from South Pars. Pipeline options include a build-own-operate pipeline that will span 1,800 kilometers, bringing gas to Europe. Another is the 3,000-kilometer Nabucco pipeline, which will bring gas to Europe through Turkey and other Eastern European countries. Also, the country moving forward with plans to export some South Pars gas through the Iranian Gas Trunkline 9 (IGAT-9).

A major obstacle in bringing South Pars to its full gas production capacity of 820 MMcm/d is the economic sanctions currently imposed on Iran by the United States and United Nations because of the country's nuclear program. Because of this, Iran has been unable to attract international investments to develop the mass
Activities
Status Updates
South Pars Phase 20 Installation Underway
Type: Development Activity

Mar. 2013 - Installation of the jacket for South Pars Phase 20 is underway in Iranian waters in the Persian Gulf. The 1,700-ton jacket was loaded onto an installation vessel at the Khorramshahr yard and will be installed in 206 feet (63 meters) of water. Construction of the jacket took eight months. The platform for South Pars Phase 21 has already been installed and is being prepared for drilling operations. South Pars 20 should be operational by the end of March 2013.

South Pars 17 and 18 Nearing Completion
Type: Facility Construction

Nov. 2012 - Iranian Offshore Engineering and Construction Company successfully built and installed the 2,320-ton production deck for South Pars A17 platform. From engineering to installation, the entire project took just over 4 years to complete. Production will begin in about 3 months when final commissioning is complete. The unit has the capacity to produce 500 million cubic feet of gas per day. Construction of the production deck for the A18 platform is 90% complete. Completion of the two platforms will be a milestone for phases 17 and 18 in the South Pars development.

CNPC Pulls Out of Iran's South Pars Project
Type: Status Update

Jul. 2012 - China National Petroleum has pulled out of developing Phase 11 of Iran's offshore South Pars gas field, reported Dow Jones newswires. The firm, which had delayed the project for more than 1,130 days, has already withdrawn all of its workers from the southern Iranian port city of Assaluyeh, the onshore part of South Pars gas field in the Persian Gulf, Mehr said, citing information from the oil ministry.

Iran to Invest $9B to Implement Phase 11 of South Pars field
Type: Status Update

Dec. 2010 - The Economic Council of Iran will allocate an investment in the amount of US $9.414 billion in order to accelerate Phase 11 of the South Pars field development project, according to a news agency. This phase of development will increase daily production of natural gas to 2 billion cubic feet and 80,000 barrels of gas condensate. Considered to be the largest gas field in the world, South Pars is located on the Iranian border with Qatar in the Persian Gulf (the Qatari side of the field is referred to as the North Field). Recoverable reserves in South Pars are estimated at 14 trillion cubic meters of natural gas and 18 billion barrels of condensates.

Third Platform Jacket Ready for Installation in South Pars Phase 12
Type: Status Update

Oct. 2010 - Pars Oil and Gas Co. announced that installation of the third platform jacket for the South Pars Phase 12 development should commence within the next five weeks. The two-thousand-ton-jacket will be installed in a water depth of 230 feet (70 meters), and following the installation development drilling will start. Additionally, another satellite platform will be installed in order to prevent production decline in the wells. Production is hoped to flow at a rate of 3 Bcf/d of natural gas. South Pars is located on the Iranian border with Qatar in the Persian Gulf. Recoverable reserves in South Pars are estimated at 14 trillion cubic meters of natural gas and 18 billion barrels of condensates.

CNPC Readying for Possible March Launch of South Pars Phase 11
Type: Status Update

Feb. 2010 - Reports indicate that China National Petroleum Corporation (CNPC) and National Iranian Oil Company (NIOC) finalized an agreement whereby CNPC will participate in the development of Phase 11 of the South Pars gas project, which is situated on the Iran/Qatar border in the Persian Gulf. As part of Phase 11, CNPC will reportedly commence appraisal drilling in the gas field to evaluate the project's reserves as early as March. Divided into 24 phases of development, South Pars is shared by Iran and Qatar and spans 914,290 acres (3,700 square kilometers). NIOC wholly owns and operates the Iranian portion of the project.

Stake In South Pars on the Table for India
Type: Status Update

Dec. 2009 - A 40% stake has been offered to India by National Iranian Oil Co. in phase 12 of the South Pars gas field and 6 million metric tons of LNG a year. If accepted, India's state-run Oil & Natural Gas Corp. and Hinduja group will each receive a 20% interest in the field for a price of $7.5 billion. Considered to be the largest gas field in the world, South Pars is located on the Iranian border with Qatar in the Persian Gulf (the Qatari side of the field is referred to as the North Field). The 12th phase of the South Pars development, situated in the southeastern block of the field and covering 37,066 acres (150 square kilometers), aims to produce 78 MMcm/d of natural gas for transportation to the sixth Iranian Gas Trunk Line and Iran LNG, a nearby gas liquefaction unit.

Iran Needs $40B to Develop Remainder of South Pars
Type: Status Update

Nov. 2009 - The managing director of Iran's Pars Oil and Gas Co. states that the Middle Eastern country will need $40 billion in additional financing to complete the remaining phases of the South Pars development within 10 years, reports Dow Jones. "We predict all phases of South Pars will be developed within the next 10 years," Ali Vakili, managing director, was quoted as saying. "We predict that we need about $40 billion to complete the remaining phases." The largest gas field in the world, South Pars is located on the Iranian border with Qatar in the Persian Gulf (the Qatari side of the field is referred to as the North Field).

Total Interested in Continuing Pars LNG Project
Type: Status Update

Oct. 2009 - Total has resumed contacts to enter the Pars liquefied-natural-gas export scheme in Iran, a state company said, despite rising tensions between the West and the Islamic Republic. Total met last week with the managing director of the National Iranian Gas Exporting Co., Reza Kasaeizadeh, NIGEC said in a statement posted on its Website. "The French company expressed...interest to continue its activities in Pars LNG project," it said. It is unclear when the statement was posted. Total declined to comment. The cost of Phase 11 -- tapping into Pars, the world's largest non-associated gas field which Iran shares with Qatar -- is estimated at $4.7 billion. The project will produce natural gas for the Pars LNG project, which is expected to export 10 million metric tons per year mainly to Europe and East Asia.

Iran to Up Gas Output After Launch of New South Pars Platform
Type: Status Update

Sep. 2009 - Iran announces plans to increase its natural gas output by one bn cubic feet (bcf) of gas per day after the inauguration of a new gas platform in the South Pars gas field. Manager of the marine section of the phases 6, 7 and 8 of the giant gas filed Karim Hasanzadeh said the platform would be inaugurated in the first week of October. He added that the natural gas exploited from the phases would be injected into the Aqajari oil filed via a 504-kilometer pipeline to boost its oil output. Gas injection is a reservoir maintenance or secondary recovery method that uses injected gas to supplement the pressure in an oil field. The South Pars gas field is jointly owned by Iran and Qatar.

Iran Oil Minister Says 2009 Bright Year for South Pars Project
Type: Status Update

Jun. 2009 - Oil Minister Gholamhoseyn Nozari announced executive works on 11 other phases of the South Pars gas field will soon begin. Stating that the Oyek Company is the contractor of the phases 20 and 21, Nozari added that the company set an international record by implementing the phases nine and 10 of the South Pars project. Implementation of the phases 20 and 21 is meant to produce 50 cubic meters of gas, 77,000 barrels of condensates and one million tons of ethane, and it will take 52 months to complete the projects at a cost of $5 billion.

South Pars
Producing - May 2003 to -

The first production from South Pars gas field began in May 2003 from Phases 2 and 3. Phase 1 came on stream in October 2004; Phases 4 and 5 came on stream in October 2004. The other 23 phases of field development haven't yet commenced production.

South Pars
Producing - Under Dev. - May 2003 to -

The first phases to commence production were Phases 2 & 3, developed by Total. Other phases currently producing include: Phases 1-5. Phases 6-24 are still under development. Daily gas production from South Pars is expected to reach 820 MMcm/d.

Under Development - 1997 to Apr 2003

South Pars is being developed in 24 phases. The first phase awarded was in 1997 (for Phases 2 & 3). Development continues today; there are still a number of phases that have not been awarded yet.

Update History
The SubseaIQ Team works everyday to provide you with the latest information on the offshore field development market. The following table provides you with a detailed record of each addition and update made to this project by the SubseaIQ team.
UPDATE TYPE DATE DAYS AGO
Field Updated Mar 07, 2013 75
Activity Added Mar 07, 2013 75
Facility Updated Nov 06, 2012 196
Field Updated Nov 06, 2012 196
Activity Added Nov 06, 2012 196
Field Updated Jul 30, 2012 295
Facility Updated Jul 30, 2012 295
Activity Added Jul 30, 2012 295
Field Updated Dec 07, 2010 896
Activity Added Dec 07, 2010 896
Field Updated Oct 14, 2010 950
Field Status Updated Oct 14, 2010 950
Activity Added Oct 13, 2010 951
Field Updated Feb 10, 2010 1196
Facility Updated Feb 10, 2010 1196
Activity Added Feb 10, 2010 1196
Field Updated Dec 02, 2009 1266
Activity Added Dec 01, 2009 1267
Activity Added Nov 02, 2009 1296
Activity Added Oct 12, 2009 1317
Field Updated Oct 12, 2009 1317
Activity Added Sep 24, 2009 1335
Project Description Updated Jul 27, 2009 1394
Facility Updated Jun 01, 2009 1450
Activity Added Jun 01, 2009 1450
Field Updated Apr 20, 2009 1492
Project Description Added Nov 24, 2008 1639
Field Added Oct 09, 2008 1685
Facility Added Oct 09, 2008 1685
Facility Status Added Oct 09, 2008 1685
Field Status Added Oct 09, 2008 1685

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Facility Name South Pars
Duty Gas
Operator NIOC (NOC)
Current Status Producing since 2003
Host Type Fixed Platform
Water Depth 70 m / 231 ft
Dev.Cost $28,000,000,000
 
Region Iran
 
Location
 
Field Name South Pars
Discovery Date
Block
Reserve Type Gas
Current Status Producing - Under Dev.
Production Start
Water Depth 70 m / 231 ft