TEHRAN: Deputy oil minister has estimated that gas revenues will soon exceed oil income in view of current global prices. Roknodin Javadi described the latest status of development of South Pars gas field phases announcing the completion of onshore projects for Phases 17 and 18; “these phases will become operational in the next Iranian calendar year by completion of offshore sections.”
Managing director of National Iranian Oil Company (NIOC) further reported that Phases 19, 20 and 21 of South Pars gas condensate field will be put in use by next summer asserting “remaining phases of South Pars will also become up and running before the incumbent government leaves office.”
“South Pars fields mark one of the two Iranian energy poles,” underlined the official adding “current production of the field currently reaches a total of 420 million cubic meters of rich natural gas a day playing a significant role in supplying energy demands of the country.”
Javadi further maintained that by completion of all developmental phases, production will reach 5.8 million cubic meters per day; “considering current global prices, gas revenues from South Pars field are likely to excel those of oil.”
“The value of Phases 15 and 16 adds up to 3 billion dollars given the 50 dollar per barrel price for oil,” reminded Javadi concluding “the project will have an annual revenue of 6 billion dollars, which means the return of the capital in less than a year.”
