Negotiations underway with domestic companies on developing South Pars oil layer

January 4, 2019

TEHRAN- The managing director of Pars Oil and Gas Company (POGC), which is in charge of developing Iran’s South Pars gas field in the Persian Gulf, said that this company is in talks with a number of Iranian companies on development of the oil layer of the field, ISNA reported.

Making the remarks in a recent press conference, Mohammad Meshkinfam said the negotiations are confidential.

Iran started pumping oil from the oil layer in March 2017 with the initial production of 5,000 barrels per day (bpd) which currently stands at 25,000 bpd according to Meshkinfam.

Iran’s development of South Pars oil layer is still at the pilot phase, but the country sees positive prospects for 150,000 bpd of recovery in the currently producing reservoir.

Officials have said the development of the layer is a complex process requiring integrated development.

“We are looking for a competent contractor who can make a commitment on production. Iranian companies are interested in getting money and digging wells. We are looking for cumulative production,” former deputy head of the National Iranian Oil Company (NIOC) Gholamreza Manouchehri has said.

NIOC was in talks with Denmark’s Maersk Group for the second phase development of the South Pars oil layer, then negotiations with the Danish company was stopped after Maersk sold its oil and gas division to French oil major Total in August 2017.

MA/MA

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