“Those working on the project of developing phase 1 of the South Pars Gas Field deserve the right to inaugurate it as well”, said Khatami while asking Manuchehri to unveil the project symbol.
He added that this gas field is of paramount importance since it could fulfill the needs of Iran and even the world due to the rich gas reservoirs. More significantly the gas field which is jointly used by Qatar has been constructed and inaugurated by the Iranian experts.
The gas production as an energy source is paid double attention in Iran since the economic, industrial and productive activities are growing and the society’s demand for gas is increasing as well, the president stated, adding that compared with the fossil fuels it creates less pollution in the environment bringing about better use of the these fuels.
In addition, the oil resources should be renovated for better recovery for which the gas injection to the oil wells is the best alternative, he noted.
“The establishment of Petropars Co. is a successful experience in gas industry, and presently it is competing with the great companies in the world. Today, we are exporting the gas besides fulfilling domestic needs. Assaluyeh has special position in Iran’s economy, which would definitely continue in future”, Khatami said.
Bijan Zanganeh, speaking next, said that the successful development of the Phase 1 of the South Pars Gas Filed (SPGF) and establishment of Petropars Co., firstly as a general contractor and secondly as an oil company are two great achievements gained through the project.
Supporting the general contractor companies in different sections is the main tool for promoting national technology in implementing grand projects. The project of the SPGF Phase 1 has provided this opportunity for Petropars Co. and other domestic producers, as the company has successfully performed technical management and referred the two-third of the whole project to the Iranian companies, which is an eye-catching measure, the minister explained.
He noted that by implementation of the project of the SPGF Phase 1, a buy-back contract was singed at the Iranian capital. The whole sub-sea pipe-laying was carried out by the Iranian company. The offshore platforms with great weight and volume were constructed in Iran. A gas refinery plant, with a huge capacity was constructed by the Iranians. All of them have been carried out for the first time ever in the country.
The construction capacities in the oil and gas sectors have greatly improved during the past years.
Zanganeh also announced that Phase 4 of pilot production has been launched and Phase 5 of the South Pars will completely become operational by early 2005, expressing hope that the contracts for developing other eight phases Pars would be signed in 2004.
“Participation of the Iranian contactors is the most significant feature of the SPGF project, as 29 domestic companies have completed 25 percent of the project”, said Seyyed Mahdi Husseini, the managing director of the National Iranian Oil Company.
At the inauguration ceremony, the managing directors of Sadra Co. and Maritime Equipments Manufacturing Co. presented reports on innovations and conveyance of the technical know-how of this project.
Reza Veiseh, the managing director of Industrial Development and Renovation Organization (IDRO) explaining the role of IDRO in implementing the project, said that Iran has 100 percent technical capability to domestically construct the phases similar to the SPGF phase 1.
In his part, Manuchehri said that the Petropars Co, has been established with the express intention of handling project management essential for the oil sector. He added that through this project the country would earn $1.2bn Forex revenues per annum.
The phase 1 of the South Pars Gas Field has been constructed under full management of the Iranian companies, which would extract almost 25 million cubic meters of exportable gas per day, coupled with the daily production of 40,000 barrels of commercial condensate and 200 tons of solid sulfur.
The produced gas will be transferred to the onshore refinery plant of the first phase from a sub-sea reservoir in 3,700 m depth via a 105-km pipeline. Then, it would be injected into the national gas network after the sulfur and gas condensate are separated. This amount of the produced gas would decrease the crude oil consumption in the country.
After nationalization of Iran’s oil industry, the SPGF project is the first one that has been carried out by the Iranian experts, which indicates the promotion of technical and management capabilities of the Iranian experts. Furthermore, by the experiences gained in this project, the Iranian contractors have become ready to participate in the similar international tenders, being able to render their technical services to other countries. In the project, one hundred Iranian contractors, with 8,000 individuals were activated, completing 69 percent of it.
Given these successful achievements in implementing the project, the commissioning costs of each of the SPGF gas fields, which have been estimated to be over $1b if carried out by the foreign contractors, would be reduced to the two-third of this figure.
The Onshore Refinery Plant is one element that comprises the SPGF Development Phase 1, along with the four other elements of offshore complex, offshore and onshore pipeline, gas export pipeline and condensate export pipeline.
The plant is located on the coast at Assaluyeh, about 270 km from South East of Bandar Bushehr and about 82 km from Kangan refinery. In the full management of the Petropars Co. as a client, the plant has been designed and constructed by Daelim Industrial Co., Ltd. of South Korea and the IDRO as an EPC consortium contractor in order to refine the raw gas and condensate transferred via 32-inch sub-sea pipeline from the offshore facilities of Iran-Qatar border in the Persian Gulf, 105 km away from the plant.
The SPGF project has become operational within four years, costing $1.18bn. Over 100 Iranian and foreign contractors have been activating in different stages of designing, constructing and commissioning. However, most parts of the projects have been carried out by the Iranian contractors.
FK/AJ/MA
END
MNA
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