South Pars development still economical

TEHRAN, Feb. 01 (MNA) – Despite falling oil prices, implementation of new South Pars phases remain not only economically justifiable but also profitable, said a POGC official.

Project Director of Phases 17 and 18 at Pars Oil and Gas Company (POGC) Hassan Boyeri noted the economic feasibility of construction and development of South Pars phases despite the drop in global oil prices adding “being a joint oil and gas field, development of South Pars remains as top priority in oil industry under all circumstances.”

Boyeri 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.”

“Global crude prices would not remain constant at the current level,” noted the official saying “the two phases enjoy the natural gas production capacity of 50 million cubic meters per day.”

He 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.”

“The two phases enjoy a daily production capacity of 77 thousand barrels of gas condensate,” highlighted Boyeri estimating that the rate of return for the investment will be 2.5 years.

He also recalled that a total of 400 tons of sulfur are being produced in the joint field reiterating “currently, 30 million cubic meters of gas is being produced per day in Phases 17 and 18 of South Pars.”

 

HA/3038941

 

News Code 114062

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