Iran starts up South Pars Oil Layer

Iran

TEHRAN, March 20, 2017 – Iran has begun producing oil from the South Pars Oil Layer, an official from the National Iranian Oil Company (NIOC) said on Sunday.

The oil layer lies in the same area as the super-giant South Pars gasfield, but is developed separately.

While the field falls under Pars Oil and Gas Company’s mandate, Petroiran Development Company and the Iranian Offshore Oil Company have taken leading roles in aspects of the project such as the installation of Iran’s first FPSO, Cyrus.

The asset is now producing from seven subsea wells connected to the FPSO and has a target of 35,000 bopd in its first phase, which officials expect to reach within a week.

The South Pars Oil Layer is shared with Qatar, where it is known as Al Shaheen. As a joint field, it is among those prioritised for investment and has been named as a likely candidate for development under an Iran Petroleum Contract.

In related news, Total is seeking a 50.1% stake in the USD 4-billion South Pars phase 11 development, the company revealed in a regulatory filing on Friday.

The filing to the U.S. Securities and Exchange Commission disclosed discussions held in 2016 with Iranian officials on multiple projects.

In November 2016, NIOC signed a USD 4.8-billion, 20-year provisional agreement with Total, CNPC and Pars Oil and Gas Company to develop South Pars phase 11. In its filing on Friday, however, Total estimated the project required an investment of USD 4 billion, of which it would finance 50.1%.

Image: Allseas

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