He hoped that by end of this year, the contract for development of phase 11 will be signed and collection of oil industry works in the upstream sector of South Pars will end by the next Iranian calendar year of 1396 (2017-18).
“The remaining works in South Pars are partly due to problems caused by the offshore platforms and Sadra Company, which are hoped will be solved and work in the offshore section will be done with speed.”
Elsewhere in his remarks, Zanganeh said the second priority of the upstream sector of the oil industry is development of oil fields west of Karoon. “For the time being, more than 200,000 barrels are daily extracted in the fields and Enhanced Oil Recovery (EOR) in the area is of high significance.”
He said, “As delay in extraction out of the joint fields would result in EOR of the fields by the other party, any delay in commissioning of the EOR projects will result in waste of national wealth. If extraction out of the field is not on time, the parts of the reserves will be left useless or their exploitation will be possible at high cost.”
Unfortunately, both before and after the Islamic Revolution, the EOR was not appreciated as it deserved, said Zanganeh, adding that the new model of oil contracts will address major portion of the country’s EOR needs and it is hoped the goal will be met.
The Minister noted that Iran’s oil production capacity stood at 3,800,000 bpd on the average in the first half of this year and it will exceed 4,000,000 bpd by end of this year (March 20) and by the next four years, it will reach more than 4,600,000 bpd.