Zangeneh: Total not quitting SP Phase 11 contract

834  Views   |   Sunday, January 28, 2018

Tehran, Jan 28, IRNA – Minister of Petroleum Bijan Zangeneh says French Total FinaElf has not left the contract on phase 11 of South Pars gas field and there is no evidence per se.

Zangeneh: Total not quitting SP Phase 11 contract

'Total has not left the contract on phase 11; rather all tenders relating to phase first of the project, excluding drilling, have been run based on the schedule and we hope that within the next 15 to 20 days, all contracts, that winners of most of which are Iranian companies, they will be announced and go in effect,' said Zangeneh in a press conference in Tehran on Sunday.

He said that South Pars gas field's yield has reached 553 million cubic meters this year from 470 million cubic meters in January 2017, an indicative of 83 million cubic meter increase in the output, according to the minister.

Zangeneh said six phases of South Pars were operational in March 2017 in the presence of president to yield 150 million cubic meters of sweet gas a day, well exceeding that of Qatar for the first time ever.

He added that 11 South Pars phases were operational in the 11th government, whose output is pegged at close to 300 million cubic meters/day sour gas.

'We are now ahead of Qatar. Of course, Qatar has started implementing new phases, but we are still ahead of them in terms of gas production from the field,' Zangeneh added.

He said in Winter Iran's crude production from joint fields west of Karoon, including Yadavaran, Yaran and Azadegan, reached 305,000 barrels per day while it was 165,000 bpd a year before.'

By July 2018, 50,000 to 60,000 bpd will be added to production from fields west of Karoon, Zangeneh said, adding that Azar oilfield yielded as much as about 30,000 bpd oil this year and extraction of more than 20,000 bpd oil from South Pars oil layer started this year.

He said this year, important projects were operational and now, 12 million liters of euro 4 gasoline are produced in Persian Gulf Star Refinery and by end of this year on March 20, the refinery's second phase will start yielding output for the first ever.

Zangeneh went on to say that increase in production by joint fields has resulted in increase in the exports.

As for the oil sector, 60,000 bpd increase in crude exports were observed in the first 10 months of this year on the average and now, export of crude and gas condensates has reached more than 2.5 million bpd.

The minister put Iran's oil production capacity at less than four million barrels per day.

Zangeneh said talks are underway with foreign companies. 'If we succeed in having fruitful talks, the production capacity will go up by 1.7 million barrels.'

This year Exports started to Iraq, reaching 12 to 13 million cubic meters a day and we do export 30 million cubic meters of gas to Turkey as usual, said Zangeneh.

He said no oil sale money is now blocked and all the earnings for the exported crude oil consignments are deposited in the Central Bank account.