Early Production May Damage Iran's Gas Reserves

Energy experts in Iran have warned that early production and exploration before the reserves stabilize may damage country’s gas reserves. Iran announced last week that South Pars field's Phases 15 and 16 has started.

Last month, the Mehr news agency quoted Deputy Oil Minister Javad Owji as saying that once six more phases of Iran's South Pars gas field come on stream, the gas field's output will be increased by 200 million cubic meters (mcm) per day to 500mcm.

However, experts say if Iran starts early gas production from gas fields before stabilizing, the risk of damaging gas reserves or wells is high.

Iran has commissioned eight phases so far and each phase produces 25 mcm/d of gas. The Phases 9 and 10 have not been completed yet and they are producing 42 mcm/d of gas. About 19 phases of South Pars are under construction.