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22-05-23

Second Phase of South Pars Oil Layer's Development Project Commences

(MENAFN) The executive operations for the second phase of the South Pars Oil Layer's development project officially began in a ceremony held on the concluding day of the 27th Iran International Oil, Gas, Refining and Petrochemical Exhibition, known as the Iran Oil Show 2023. The ceremony was attended by prominent figures in Iran's energy sector, including the Head of the National Iranian Oil Company (NIOC), the Head of Pars Oil and Gas Company (POGC), and the Vice Chairman of the Parliament's Energy Committee.

The implementation of the second phase was initiated following the signing of a $500 million deal between the Iranian Offshore Engineering and Construction Company (IOEC) and a well-known foreign company in March 2022. This agreement, based on the Oil Ministry's new model of upstream contracts, aims to develop the South Pars Oil Layer over a 20-year period. The contractor is responsible for providing the necessary financial resources for the project, including direct capital costs, indirect costs, and operating expenses.

The scope of the development contract encompasses several key activities. It involves upgrading and modifying the existing processing vessel and platform, as well as overhauling existing wells. The project also includes the construction of new wells for production, water injection, and assessment purposes. Additionally, the installation of an oil discharge and loading system, along with strengthening the existing water injection system, is part of the project description.

The commencement of the second phase of the South Pars Oil Layer's development project signifies the significant progress being made in Iran's oil and gas sector. With the implementation of this phase, the country aims to enhance the production capacity of the oil layer and maximize the utilization of its valuable resources. The project's successful execution is expected to contribute to the country's energy self-sufficiency and economic growth, reinforcing its position as a key player in the global energy market.
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