Iranian firms sign $900m deal to develop offshore gas field

TEHRAN – Iranian Offshore Engineering and Construction Company (IOEC) and Pars Oil and Gas Company (POGC) signed a deal worth $900 million on Saturday to cooperate in developing the country’s Kish gas field, Shana reported.

Held on the occasion of the 44th anniversary of the Islamic Revolution, the signing ceremony was attended by senior officials including Oil Minister Javad Oji, Head of National Iranian Oil Company (NIOC) Mohsen Khojasteh-Mehr as well as the heads of the signatory firms.

Kish gas field is one of Iran’s largest gas fields whose in-place reserves are estimated at 56 trillion cubic feet; when fully developed, the field will have the capacity to produce 120 million cubic meters of gas per day.

As the biggest gas project in the country after South Pars, the Kish gas field’s development plan is prepared in four phases and will take 14 months to complete.

With the implementation of this project, which includes the construction of a 200-kilometer submarine pipeline from Kish Island to Assaluyeh by Iran Marine Engineering and Construction Company and the completion of 14 wells by Iran’s National Drilling Company (NIDC), over 28.3 million cubic meters per day of natural gas and 11,300 barrels per day of gas condensate will be produced and transferred from Kish Island to the refineries of South Pars Gas Complex (SPGC) in Assaluyeh.

Kish gas Field is a giant gas field close to Kish Island in the Persian Gulf. It is one of the NIOC’s recent discoveries which was discovered in 2006. The field also holds at least one billion barrels of condensate of which at least 331 million barrels are recoverable.