Iran, Denmark launch oil talks over South Pars

TEHRAN, Oct. 19 (MNA) – NIOC deputy head has reported on negotiations with Denmark’s Maersk Group over development of the second phase of South Pars oil layer.

Deputy Head of NIOC for Development and Engineering Affairs Gholamreza Manuchehri pointed to the talks held with the Danish company on Maersk for partnership in developmental project of South Pars oil layer saying “given the heavy weight of South Pars oil layer, use of modern technologies and horizontal drilling remain as top developmental scenarios in the joint oilfield with Qatar.”

“International companies own relevant technologies,” noted the official asserting “the heavy oil of the field requires any developmental measure to exploit IOR/EOR techniques from the outset.”

He underlined that drilling of 300 wells in South Pars oil layer has been put on the agenda; “development of the layer’s second phase, as a top priority pursued by Iran’s Oil Ministry, will be carried out within the framework of Iran’s new model for oil contracts called Iran Petroleum Contracts (IPC).”

“Negotiations are underway with Maersk, a Danish business conglomerate, although no final agreement has been reached yet despite the foreign firm’s excellent capabilities for expansion of the joint field.

Manuchehri further maintained that Qatar has so far drilled 300 wells for recovering oil from the joint layer pointing to the need for Iran to drill at least two-thirds of the amount over a long period of 20 years in order to increase the output to 200 thousand barrels per day.”

Development plan of South Pars oil layer aims to bring about a daily production of 35 thousand barrels although Qatar has started oil production from the joint field since 1991.

The Maersk Group of Denmark is an integrated transport & logistics company with multiple brands and is a global leader in container shipping and ports.

The South Pars oil layer is shared with Qatar, where it is called Al Shaheen. The field is a series of Cretaceous reservoirs that lie above the deep Permian Dalan gas reservoirs of the South Pars gas field. Its development is technically challenging due to the thin target thickness of reservoirs coupled with the field's large areal extent.

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News Code 120656

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