TEHRAN - Offshore phases 9 and 10 of the South Pars Oil and Gas Field Development Plan have so far cost $70 million more than the contract envisioned, Iranian Offshore Engineering Company (IOEC) project manager Nozar Arian announced here on Wednesday.

He said phases 9 and 10 were to cost $374 million according to the contract, adding that the increase in the price of steel, rises in transportation and drilling rig costs, and other expenditures have resulted in a $70 million cost overrun so far.

The offshore phases 9 and 10 are currently 67 percent complete, and undersea pipeline construction will begin in early September, he stated.

After negotiations, it was decided that the contractor would pay for the cost overrun, he added.

Construction of 32-inch and 4-inch pipelines is among the other operations being implemented, and the pipes required for the project have been purchased and transported to the country, he explained.

The 52-month plan for the development of phases 9 and 10 of the South Pars Gas Field, consisting of both offshore and onshore sections, is being implemented jointly by Iranian companies, which are responsible for 58 percent of the project, and foreign companies, which are responsible for 42 percent, he added.

Daily production of 50 million cubic meters of refined natural gas for domestic consumption, 80,000 barrels of gas condensates for export, and 400 tons of sulfur as a byproduct as well as annual production of one million tons of ethane to feed petrochemical units and 1.05 million tons of natural gas for export have been envisaged in the plan, a report released by the IOEC said.