Page 5 - MEOG Week 11 2022

MEOG COMMENTARY MEOG

He added that the MoU had been signed “The situation of the South Pars oil layers is
between NIOC and Sina Energy Gostar Holding, such that we cannot exploit them by conven-
noting that technical negotiations have begun tional drilling that we have in the country; there-
for the preparation of a delivery programme and fore this is one of the special advantages of this
operation plan (DPOP) with a “new model” of contract that in addition to foreign investment,
oil contract to be awarded. technology transfer will also be made possible,”
Masjid Soleyman was discovered in 1908 he added.
and was the first successful exploration well in The Ministry of Petroleum has not yet pro-
the Middle East. Since then, Iran has discovered vided any details about the foreign contractor,
around more than 300 oil and gas reservoirs just that it would be responsible for funding the
across more around 150 fields. project, including direct, indirect and operating
The field’s first development phase was com- costs.
pleted by state-owned China National Petro- IOEC and its partner will update reservoir
leum Corp. (CNPC). models, upgrade and modify existing facilities,
Sina Energy is a religious endowment for war overhaul existing well and drill new wells for
veterans and the poor, owned by the Bonyad-e appraisal, production and water injection.
Mostazafan Foundation and falls under the Exe- Located 130 km off Iran’s southern coast in
cution of Imam Khomeini’s Order (EIKO). 67 metres of water, the oil layer has an estimated
Latest production data for the field suggests 7bn barrels of oil in place (OIP), 900mn barrels
a capacity of around 55,000-60,000 bpd with of which are seen as recoverable, with first phase
around 1.7-1.8bn barrels having been produced production reaching 25,000 bpd and the second
from its original 7bn barrels reserve. No figures phase seen raising this to 55,000-60,000 bpd.
have been provided about the scale of the second The South Pars deposit, which Iran shares
development phase. with Qatar, covers an area of 9,700 square km,
with Iran’s 3,700-square km portion holding
Pars oil around 14 trillion cubic metres of gas and 18bn
Also this week, the official energy media out- barrels of gas condensates. In Qatar, the gas asset
let Shana reported that NIOC had signed an is known as the North Dome and is responsi-
agreement with subsidiary Iranian Offshore ble for the vast majority of the island nation’s
Engineering and Construction Co. (IOEC) production.
and a “reputable foreign company” to leverage SPOL is the Iranian extension of Qatar’s
enhanced oil recovery (EOR) techniques for the Al-Shaheen oilfield, from which QatarEnergy
second phase of development in the South Pars and partner TotalEnergies produce upwards of
Oil Layer (SPOL) to increase output. 300,000 bpd.
NIOC CEO Mohsen Khojasteh-Mehr said Combined, Danan, Masjid Soleyman and
that “for the first time, horizontal drilling with SPOL are seen contributing around 75,000-
new foreign technologies and water injection 85,000 bpd, or 4-5% of Iran’s planned capacity
will be used as one of the methods of produc- increase and these projects are the tip of the ice-
tion enhancement,” following the signing of a berg of the MoP’s efforts to build out the coun-
$500mn, 20-year contract. try’s vital oil sector.™

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