Zanganeh told a televised TV debate that 70 percent (more than $3.5 billion) of the value of development projects under the deal belongs to Iranians, which should be taken as an exceptional opportunity for Iranian contractors.
National Iranian Oil Company (NIOC) signed a $4.8 billion agreement (HOA) deal with French Total, China National Petroleum Corp. and Iranian Petropars Company on Tuesday for development of the phase 11 of South Pars joint gas field.
Once the project is implemented, 56 million cubic meters will be added to Iran’s gas extraction capacity from the field which is shared with Qatar.
Under the agreement, the contractor will finance the project, thus luring billions of dollars of investment for the country.
The minister said the Tuesday deal will result in operation of the first gas compression platform in the area. “The platform, weighing about 20,000 tons, aims to prevent fall in production of the reservoir.”
Zanganeh said 40 months after conclusion of the deal for development of phase 11, the first consignment of gas extraction will take place and about three years later, the gas compression platform will be installed.
He highlighted importance of enhanced recovery and said one of the main goals of the Ministry of Petroleum will be enhanced recovery.
He then underlined developed of Farzad B and Estandiar offshore oil fields as well as South Pars oil layer and said Azadegan field west of Karoon is of high importance for Iran because in addition to being common, it has a very low recovery coefficient, standing at about five percent level, and the figure can be increased up to almost 20 percent.
“For the time being, there are about 25 oil rigs active in Azadegan field and we are busy digging wells in the area. However, the same production level will in the coming years fact naturall fall. So the problem is not digging well, rather access to the technology of enhanced recovery.”