South Pars (Phase 6-8)

Location and Ownership

• The South Pars gas field is situated in the Persian Gulf, shared by Iran and Qatar. Phases 6, 7, and 8 are located in shallow water within the Iranian sector.
• The field is owned by the National Iranian Oil Company (NIOC), with the development and operation managed by Pars Oil and Gas Company (POGC), a subsidiary of NIOC.

Development and Operation

• The development of phases 6, 7, and 8 was undertaken by a consortium involving Petropars and Statoil (now Equinor). Statoil was responsible for the offshore platforms, while Petropars handled the land-based facilities.
• The project involved the construction of three offshore platforms and the laying of 31-inch (790 mm) pipelines from each platform to the coast.

Production Capacity

• Phases 6, 7, and 8 are designed to produce 3 billion cubic feet (85 million cubic meters) of natural gas per day. Additionally, they produce 70 million cubic feet (2.0 million cubic meters) of ethane, 120,000 barrels per day (19,000 cubic meters per day) of condensate, 4,500 tons of liquefied petroleum gas (LPG) per day, and 600 tons of sulfur per day.

Impact on Iran's Economy and Energy Sector

• The completion and full operation of these phases had a significant impact on Iran's energy and economic levels, contributing to a 3.5% increase in the country's Gross Domestic Product (GDP) and a 14% increase in gas production capacity.

Project Management and Local Participation

• The project involved cooperation with both local and international contractors, which facilitated knowledge and technology transfer to Iranian companies. Over 200 Iranian contractors participated, with local vendors contributing about 53% to the project.
• Petropars improved project management standards and quality management during the development of these phases, demonstrating capabilities at an international competitive level.

Production History and Future Outlook

• Drilling began on January 26 for the first well in phases 6-8, with the project involving the spudding of 30 production wells.
• As of 2014, the field had reached peak production, and based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2051. Currently, the field accounts for approximately 7% of Iran’s daily gas output.

Infrastructure and Facilities

• The development included the construction of offshore platforms, land-based facilities, and the laying of extensive subsea pipelines. The project also involved building refineries and other infrastructure necessary for gas processing and export.

Environmental and Operational Considerations

• With the project nearing full operational capacity, focus has shifted to addressing environmental issues such as collecting and reusing associated petroleum gas and curbing industrial wastewater. Upgrading dilapidated equipment is also a priority.

In summary, phases 6, 7, and 8 of the South Pars gas field represent a critical segment of Iran's energy sector, with significant contributions to the country's GDP, gas production capacity, and technological advancement in the oil and gas industry.