South Pars (Phase 1)

Location and Geology

• The South Pars gas field is located in the Iranian waters of the Persian Gulf, approximately 3,000 meters below the seabed at a water depth of 65 meters.
• It is part of the larger North Dome/North Field, which extends into Qatari waters.

Discovery and Development

• The South Pars gas field was discovered by the National Iranian Oil Company (NIOC) in 1990.
• Phase 1 of the South Pars gas field development was assigned to Petropars in 1998 through a buyback contract scheme by NIOC.

Development Details

• Petropars successfully completed Phase 1 of the South Pars Gas Field Development project by 2004. This involved the participation of over 100 Iranian and foreign contractors, with Iranian contractors and suppliers contributing about 69% of the project.
• The phase aimed to increase the exploitation capacity of the South Pars Gas Field and included the development of offshore platforms and the provision of maintenance services.

Production Targets

• Phase 1 was designed to produce 1 billion cubic feet (28 million cubic meters) of natural gas per day, along with 40,000 barrels (6,400 cubic meters) of condensate, 1,500 tons of liquefied petroleum gas (LPG), and 200 tons of sulfur per day.

Infrastructure and Facilities

• The development involved the construction and operation of offshore platforms. After the completion of Phase 1, one of the offshore platforms was devoted to other phases of the South Pars Gas Field Development by the Pars Oil and Gas Company (POGC).
• Onshore facilities for the project are located at Assaluyeh and Kangan near the Bushehr Port. The gas produced is treated to remove hydrogen sulfide and mercaptans before being transmitted through a trunkline to the mainland gas network at Kangan.

Partners and Contractors

• Petropars was the primary developer for Phase 1, working in collaboration with various Iranian and foreign contractors.
• Other phases of the South Pars development involved partnerships with international companies such as Total, Petronas, and Gazprom, although Phase 1 was primarily managed by Petropars and NIOC.

Economic and Strategic Importance

• The South Pars gas field is crucial for Iran's energy sector, holding approximately 50% of Iran’s domestic gas reserves and about 8% of the world’s total gas reserves.
• The project is vital for fueling Iran's power stations, domestic markets, and sustaining production from its mature oilfields through gas injection.

In summary, Phase 1 of the South Pars gas field development was a foundational step in harnessing the vast gas reserves of the field, setting the stage for further phases and ensuring significant contributions to Iran's energy needs and economic development.