‘NIOC still negotiating South Pars phase 11 project with CNPC’

August 7, 2019 - 22:7

TEHRAN - Managing Director of Pars Oil and Gas Company (POGC) Mohammad Meshkinfam said National Iranian Oil Company (NIOC) is still in talks with China’s CNPC regarding the phase 11 project of developing South Pars gas filed, ILNA reported.

The official also noted that the negotiations for the development project of Farzad B gas field are also underway with the Indian side and the two sides are trying to reach common grounds on the matter.

Meshkinfam further mentioned the development of Kish gas field as one of POGC’s top priorities, saying that the first phase of the Kish gas field’s development project is being seriously followed up and good progress is achieved.

He pointed to engineering studies aimed at determining the pipeline route and destination of the gas produced in this field, saying "Once the results are determined, the gas sources will be transferred to the South Pars or Fajr Jam gas refineries."

The official further noted that the first phase of the field’s development project includes drilling and construction of pipelines, adding that one billion cubic feet of gas (equal to one of the South Pars phases) will be produced in this phase on a daily basis.

In April, Iranian Oil Minister Bijan Namdar Zanganeh said NIOC is negotiating with a Chinese company for completing the South Pars phase 11 project.

“Representatives of the Chinese company are already in Tehran.” Zanganeh said.

Total signed a contract in 2017 to develop phase 11 of South Pars field with an initial investment of $1 billion, marking the first major Western energy investment in the country after sanctions were lifted in 2016.

The company was pressured to leave Iran after the United States threatened to impose sanctions on companies that do business in the country.

After the French company left Iran, the project was handed to China’s CNPC which was the second biggest member of the consortium that was supposed to execute the projects.

The offshore South Pars field holds the world’s largest natural gas reserves ever found in one place.


Leave a Comment

6 + 2 =