Falling oil prices not to hinder S Pars development

News ID: 3575592 -
TEHRAN, Mar. 07 (MNA) – POGC managing director said development of new phases at South Pars field will not come to a halt as a result of the decline in global oil prices.

Managing Director of Pars Oil and Gas Company (POGC) Ali Akbar Shabanpour made the remarks explaining “implementation remaining phases at the joint gas field will be carried out on the basis of new priorities; accordingly, following the full operation of South Pars Phases 17 and 18, the running of Phases 19, 20 and 21 will be put on the agenda.”

The official stressed that implementation of Phases 22, 23, 24, 13 and 14 consists the third priority of South Pars development asserting “full operation of all developmental phases will be seriously pursue regardless of the drop in crude prices.”

Shabanpour further emphasized that “in addition to being a joint field, diversity of production in each phase would guarantee economic justification of South Pars development despite sinking oil prices.”

POGC managing director recalled that in view of current prices of natural gas, ethane, LPG and sulfur, the annual income of each standard phase at South Pars field is around two billion dollars; “therefore, the return of about six-billion-dollar investment would take 2.5 to 3 years in each developmental phase.”

Project Director of Phases 17 and 18 at Pars Oil and Gas Company (POGC) Hassan Boyeri had previously evaluated the total construction cost of Phases 17 and 18 to be 6.2 billion dollars asserting “the investment enjoys economic justification for being profitable in view of low oil prices.”

He had emphasized that the produced gas from Phases 17 and 18 will replace the oil consumed by industries and power plants in the country; “therefore, a total of 50 million cubic meters of oil products particularly gasoil will be saved bringing about exports possibilities.”

 

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