Pars Oil and Gas Company, a subsidiary of the National Iranian Oil Company, signed a $900m contract Saturday with domestic company Iranian Offshore Engineering and Construction Company to develop Kish Gas Field, the second largest in the Persian Gulf after South Pars.
In addition to producing 11,000 barrels of gas condensates, the project will produce 28 million cubic meters per day of sour gas in 14 months, the Oil Ministry news service Shana reported.
The project entails laying a 32-inch 200-kilometer subsea pipeline from Kish Island in Hormozgan Province to onshore refineries in Asalouyeh in Bushehr Province. Moreover, 14 wells will be drilled on the site of the project.
As the world's fifth biggest offshore gas field, the Kish reserves were discovered in 2006 and is believed to hold an estimated 1.7 trillion cubic meters of natural gas in situ of which 1.4 tcm are recoverable. It also contains more than 500 million barrels of gas condensates.
Located 30km east of Lavan Island, the giant gas field's development plan includes three phases and upon completion of the last phase, close to 120 mcm/d of gas can be extracted from the field.
According to the POGC public relations office, special pipes using corrosion resistant alloys (CRAs) will be used for the field, which are widely used in the petroleum sector.
The field will have a 70% extraction rate in the first phase and produce 28 million cubic meters of natural gas and 11,000 barrels of gas condensates per day as soon as the first phase becomes operational.
Unlike South Pars (shared with Qatar), Kish is fully inside Iranian maritime borders near the Strait of Hormuz. Given its strategic location, it is being seen as a major gas hub in the oil-rich region.
“This and other contracts show that the (US) sanctions have not stopped us. Our oil, gas and petrochemical industries are functioning,” Javad Owji the Oil Minister said.