Lavan to Become Iran's Major Petrochemical Hub

Iranian Offshore Oil announced Wednesday that the country plans to make a final $20 billion investment in Lavan gas field to make it the third petrochemical hub, Fars News reported.

The National Iranian Offshore Oil Company (NIOOC) this week inked a US$6bln deal with a domestic corporation, Sepehr Energy, to develop the Lavan gas field and build a petrochemical complex in the island within the next 54 months.

Lavan field has 9.5 trillion cubic feet of in-place natural gas, 6.2 trillion cubic meters of extractable gas reserves, and 62 mln barrels of condensate.

It is expected to produce 750 mln cubic feet of natural gas and 11,000 bpd of condensate.

The product of the $20bln investment will be development of three gas phases and establishment of a petrochemical complex.

Production of gas, gas condensates and liquefactions and petrochemical products in Lavan will start in about five years.

IOOC plans to bring the gas output of the surrounding fields, including Reshadat, Belal, Resalat and even Khayyam gas fields, to Lavan to turn it into petrochemical products before exporting it.

Iran's Sepehr Energy Co. affiliated to Iran's Saderat Bank, one of the major general contractors of energy projects in Iran, inked a lucrative agreement with the IOOC on Tuesday to develop Iran's giant Lavan gas field in the Persian Gulf.

The offshore Lavan natural gas field, which was discovered in 2003, has reserves in place of around 9.5 trillion cubic feet.