South Pars to Sign Deal for Pressure Boost Project

Date: 02 February 2025 - 21:52

News ID: ۱۳۶۴۹۵

SHANA (Tehran) – Reza Dehqan, the engineering and development manager of the National Iranian Oil Company (NIOC) on Sunday announced that seven executive contracts for the South Pars pressure boost project, valued at $17 billion, are ready to be signed soon.
This follows the completion of preliminary studies and the signing of initial agreements with four main contractors last year, worth up to $400 million, he added.
Dehqan, speaking at a press conference, emphasized that the South Pars gas field, the world’s largest, supplies 70% of Iran’s domestic, industrial, and power plant gas consumption, as well as over 40% of the country’s gasoline needs.
However, after three decades of extraction by Iran and Qatar, the field has experienced natural pressure decline. Studies predict that by 2026, production will decrease by the equivalent of one South Pars phase (28 million cubic meters per day), and by 2028, it will drop by 1.5 phases (42 million cubic meters per day).
Dehqan warned that without timely intervention, this pressure drop could have serious implications for Iran’s energy security and economy. The pressure boost project is therefore a strategic priority for the Oil Ministry to maintain production levels.
Dehqan stressed the urgency of implementing the pressure boost project, particularly in border blocks shared with Qatar. He noted that the project would help offset pressure decline, prevent production drops, and address gas and gasoline imbalances in the country.
The primary goals of the project include managing Iran’s gas balance by securing a significant portion of the required gas and gasoline, maintaining pressure and production in the South Pars field, and preventing gas migration.
To achieve these objectives, NIOC transferred and upgraded the project’s management to its headquarters last year, initiating technical and engineering studies.
Dehqan highlighted that, through the efforts of NIOC and Pars Oil and Gas Company managers, experts, and main contractors, a comprehensive execution plan for the entire South Pars field has been developed.
The field has been divided into seven separate hubs, with all main executive contractors selected. Financing for the project, estimated at $17 billion, will be sourced from the National Development Fund, with negotiations for a $15 billion agreement underway.
The project is expected to generate approximately $780 billion in revenue by 2051, based on gas prices of 33 cents and gas condensates at $70 per barrel. The first hub is projected to become operational by 2028, with the first gas injected into the network by the end of that year.
The main contractors for the project include Iranian companies Petropars, OIEC, MAPNA, and Khatam al-Anbiya Construction Headquarters, all of which have successful track records in developing the South Pars field.
Over 70% of the project’s requirements will be met using domestic capabilities, including turbo-compressors supplied by MAPNA’s TOGA and Oil Turbo Compressor Company (OTC).
Dehqan emphasized that the project will create significant employment opportunities, with up to 17,000 direct and 500,000 indirect jobs at peak execution.
The project will also enhance Iran’s technological expertise in gas field development, particularly in designing and constructing pressure boost platforms and related infrastructure.