DEVELOPMENT OF IRAN'S SOUTH PARS FIELD SLATED TO GET UNDER WAY IMMEDIATELY

Development of South Pars gas field in the Persian Gulf off Iran will begin immediately under an agreement between National Iranian Oil Co. and Italy's Saipem and Technologic Progetti Lavori SpA. Saipem parent ENI estimated value of the agreement at $1.7 billion. South Pars is an apparent extension of Qatar's 150 tcf North field, which went on line last year. Iranian Oil Minister Gholamreza Aghazadeh has estimated South Pars reserves at 100 tcf of gas and 2.5-3 billion bbl of gas

Sept. 21, 1992

Development of South Pars gas field in the Persian Gulf off Iran will begin immediately under an agreement between National Iranian Oil Co. and Italy's Saipem and Technologic Progetti Lavori SpA.

Saipem parent ENI estimated value of the agreement at $1.7 billion.

South Pars is an apparent extension of Qatar's 150 tcf North field, which went on line last year.

Iranian Oil Minister Gholamreza Aghazadeh has estimated South Pars reserves at 100 tcf of gas and 2.5-3 billion bbl of gas liquids.

Saipem, Technologie Progetti, and Russia's Machinoimport drilled a three well appraisal program under an NIOC contract reported to be worth $37 million.

Machinoimport and Mitsubishi Corp. will participate in the development project, to be completed by the end of 1996. South Pars will produce about 1 bcfd of gas and 50,000 b/d of condensates.

The agreement covers drilling and completion of 20 gas/condensate wells. It also covers engineering, provision of materials, construction, installation, and completion of six platforms, including production, lodging, and service facilities; two 200 km pipelines to carry production ashore; and an onshore desulfurization, dehydration, and stabilization plant.