South Pars (All Phases)

Location and Geology

• The South Pars field is situated in the Iranian waters of the Persian Gulf, 3,000 meters below the seabed at a water depth of 65 meters.
• It is the northern extension of Qatar's giant North Field, collectively known as the North Dome field.

Reserves and Significance

• The South Pars field holds approximately 14 trillion cubic meters of recoverable gas reserves and 18 billion barrels of recoverable liquefied natural gas (LNG) reserves.
• It accounts for about 8% of the world’s total gas reserves and nearly 50% of Iran’s domestic gas reserves, making it the world's largest gas field by reserves.

Development Phases

• The field is being developed in 24 phases, each with distinct production targets and infrastructure requirements.
  • Phases 1 and 2: Developed by Petropars, these phases began production in 2002 and 2003, respectively. Phase 1 produces 1 billion cubic feet (28 million cubic meters) of natural gas, 40,000 barrels (6,400 m³) of condensate, 1,500 tons of LPG, and 200 tons of sulfur per day.
  • Phases 4 and 5: Awarded to a consortium of Agip (60%) and Petropars (40%), these phases were inaugurated in April 2005 and produce over 1 billion cubic feet of sour gas per day.
  • Phases 6, 7, and 8: Developed by Petropars and Statoil, these phases produce lean gas for re-injection into the Aghajari oilfield and heavy gas and condensate for export. They involve three offshore platforms and produce 3 billion cubic feet (85 million cubic meters) of natural gas, 70 million cubic feet (2.0 million cubic meters) of ethane, 120,000 barrels (19,000 m³) of condensate, 4,500 tons of LPG, and 600 tons of sulfur per day.
  • Phases 11: Initially awarded to Total, CNPC, and Petropars, this phase aims to produce up to 2 billion cubic feet (57 million cubic meters) of natural gas or 400,000 barrels of oil-equivalent (boe) per day. The project involves 30 natural gas production wells and offshore compression facilities. However, due to the US withdrawal from the Iran nuclear deal, the project's ownership structure has undergone significant changes, and Iranian companies have taken over the development.
  • Phases 12: Developed by Petropars, this phase produces 84 million cubic meters of gas per day. It includes contracts for laying offshore pipelines and constructing marine platforms.
  • Phases 17 and 18: Developed by a consortium of OIEC, IOEC, and IDRO, these phases were commissioned in April 2017 and produce approximately 50 million cubic meters of gas and 80,000 barrels of condensates per day.
  • Phases 19, 20, and 21: Commissioned in April 2017, these phases have similar production targets to phases 17 and 18.
  • Phases 22, 23, and 24: Being developed by Pars Oil and Gas Company (POGC), these phases aim to produce 56 million cubic meters of natural gas, 75,000 barrels of gas condensate, and 400 tons of sulfur per day. They also include the production of 1.05 million tons of LPG and 1 million tons of ethane annually.

Production Capabilities

• Upon full implementation, the South Pars field is expected to produce approximately 730 million cubic meters of natural gas, 1 million barrels of gas condensates, 10 million tons of LPG, and 5,000 tons of sulfur per day.
• The total daily output from all phases is targeted to be around 790 million cubic meters of gas.

Infrastructure and Facilities

• The development includes the construction of numerous offshore platforms, subsea pipelines, and onshore facilities. As of the latest updates, there are 38 production and logistics platforms and 14 pressure-boosting platforms operating over the field.
• The onshore facilities are located at Assaluyeh and Kangan near the Bushehr Port.

Contractors and Partners

• Various international and local companies are involved in the development, including Petropars, Total, CNPC, Petronas, Statoil, Agip, and several Iranian engineering and construction companies like Khatam-al-Anbiya Construction Headquarters and Iran Marine Industrial Company.

Financial and Operational Aspects

• The total investment in the South Pars project over the last 15 years is estimated to be over $70 billion, with an additional $20 billion to $30 billion required to complete the remaining phases.
• Each phase typically requires an initial investment of around $1 billion to $1.5 billion.
• The project has faced challenges due to economic sanctions, particularly following the US withdrawal from the Iran nuclear deal in 2018, which led to changes in the ownership and operational structure of some phases.

Recent Developments

• To counter production declines, Pars Oil and Gas Co. plans to drill 35 new wells from existing platforms, aiming to boost output by 36 million cubic meters over the next three years. This project is estimated to cost $1.2 billion.
• In June 2023, a significant operation was completed with the installation of a 3,200-ton platform for Phase 11, marking a milestone in the project's development.

Environmental and Operational Efficiency

• As the field nears full operational capacity, focus is shifting to environmental issues such as collecting and reusing associated petroleum gas and curbing industrial wastewater. Upgrading dilapidated equipment is also a priority.