TEHRAN (PIN) – Drilling the fourth well at oil layer of South Pars gas field is underway and the layer is supposed to start producing crude oil before the end of the current Iranian calendar year (started March 21, 2006).

Mostafa Khoei, managing director of Petroiran Development Company told Petroenergy Information Network that according to current schedule drilling the fourth well in the said layer will be finished in 45 days.

He added that development of the oil layer of the South Pars gas field includes drilling six wells an according to current plans, all drilling operations will be finished in October 2006. The managing director also stated that a number of tender bids have been considered for development of oil layer of South Pars gas field, adding, “A tender bid for purchasing FPSO vessels (which are capable of processing and separating water from oil) and interested companies have until July 16 to send their technical and financial proposals.”

Khoei said domestic companies have been invited to take part in a tender bid for building a platform, which weighs 2,400 tons.

“Development of the oil layer of South Pars gas field has progressed 29 percent,” he added. The official also noted that according to a contract signed between the National Iranian Oil Company and Petroiran Development Company as contractor in early 2005, the company will implement the plan in two phases.

“The first phase has been planned to produce 35,000 barrels per day crude oil and will cost 213 million dollars.”

“The second phase of the plan will be carried out after studying the field’s behavior when economic feasibility is proved and it is supposed to produce 54,000 barrels per day crude oil,” he noted.

The total value of the contract has been assessed at 588 million dollars. According to the contract, contractor must, at least, undertake 51 percent of the value of operations through domestic capabilities.