Iran needs $20 billion to finish South Pars project

Iran needs $20bn to develop the remaining phases of the South Pars gas field, energy minister Bijan Namdar Zanganeh said January 11.

“I hope we will be able to provide the necessary finance once the sanctions are lifted,” Shana news agency quoted Zanganeh.

“I have just told the president [Rouhani] that to complete developmental activities in the South Pars, we need $500-$600mn every month over the next two years,” Zanganeh said.

Referring to problems, especially financial problems, arising from the sanctions in recent years, he said: “It is hoped that with the lifting of the sanctions, we could provide the necessary finance using the new model of oil contracts, internal and external resources, as well as the capital market.”

“We do not welcome the sanctions, though we will not die as a result of the sanctions,” he stressed. By September 2017, nearly all the South Pars phases will come on stream, he said, adding that all the work has been done despite sanctions, the falling oil price and a lack of money.

According to Zanganeh, South Pars produces 460-470mn m³/d of gas. Iran plans to boost gas output from South Pars to 700mn m³/d.

The South Pars/North Field contains 30 trillion m³ of gas and 18bn barrels of condensate. It covers 9,700 km², of which 3,700 km² are in Iran’s territory in the Persian Gulf, divided into 29 development phases. Qatar has the rest.  

Iran is producing gas from phases 1-10, 15 and 16. Phases 12, 17 and 18 are also on stream but not at full capacity.

Iran is working on improved contractual terms in order to secure foreign investment. The buy-back contracts were an obstacle deterring some international oil companies even before sanctions were imposed on Iran. Iran is planning to present the revised terms at a conference in London in February.