South Pars (Phase 11)

South Pars Gas Field - Phase 11 Profile

Location

• The South Pars gas field, including Phase 11, is located in the Persian Gulf, within Iranian waters. Specifically, Phase 11 is situated approximately 130 km southwest of Assaluyeh and 175 km west of Kish Island, Iran.

Discovery and Development

• The South Pars gas field was discovered by the National Iranian Oil Company (NIOC) in 1990. Phase 11 is part of the larger South Pars field, which is the northern extension of Qatar's North Field.

Ownership and Operatorship

• Initially, the development of Phase 11 was awarded to a consortium comprising Total (50.1%), Chinese National Petroleum Corporation (CNPC) (30%), and Petropars Limited (19.9%) in 2017. However, due to the re-imposition of US sanctions following the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, Total and CNPC withdrew from the project. As a result, the full development of Phase 11 was ceded to Petropars in October 2019.

Project Details

• Phases of Development: Phase 11 is scheduled to be developed in two integrated and consecutive stages.
  • Stage One: Involves the drilling of 30 natural gas production wells (though the actual plan includes drilling 12 (+3) wells), fabrication, and erection of two production platforms, each containing 15 wells. The stage aims to produce 2 billion cubic feet of gas per day and 80,000 barrels of LNG. This includes the construction of establishments, installations, and two 32-inch pipelines totaling 270 kilometers in length.
  • Stage Two: Will involve the installation of revamping equipment to maintain production levels due to expected pressure reductions three years after the start of production.

Production Targets

• Phase 11 is expected to produce up to 2 billion cubic feet (bcf) of natural gas per day or 400,000 barrels of oil-equivalent (boe) per day. However, due to various delays and changes, the current production guidance is between 12-15 million cubic meters of gas per day, with plans to increase production in the future.

Infrastructure

• The project includes the fabrication and installation of one jacket and two tripods, a new SPD11A Wellhead platform, and its ancillaries. Additionally, a new 32-inch sealine with 4.5-inch piggyback lines for MEG injection will be laid to transport the offshore production to the onshore gas plant.

Challenges and Delays

• The development of Phase 11 has faced significant challenges, including international sanctions, disagreements over contract terms, and the withdrawal of foreign partners. These issues led to multiple delays and changes in the project's ownership and operatorship.

Current Status

• After years of delays, Petropars began drilling for Phase 11 in December 2020. As of recent updates, gas production from Phase 11 is imminent, marking a significant milestone for Iran's oil and gas sector despite the numerous obstacles faced.

Production Destination

• The gas produced from Phase 11 is planned to be fed to the proposed Pars LNG terminal near Tombak on the Persian Gulf coast, although this plan has been subject to changes due to the project's complexities and external factors.

In summary, Phase 11 of the South Pars gas field is a critical component of Iran's energy strategy, with significant production targets and complex development stages, but it has faced substantial challenges due to international sanctions and partner withdrawals.