Page 9 - MEOG Week 06 2023

MEOG PROJECTS & COMPANIES MEOG

Iranian firms sign deal

to develop Kish gas field

IRAN TWO state-owned Iranian firms signed a asset, Kish is seen as a key field for supplying the
$900mn deal this week for the development of incomplete Iran LNG facility at Tombak Port.
the country’s second-largest gas field in the Per- Speaking to Shana in November, Shobeir
sian Gulf. Nabavi, POGC’s deputy head of Reservoir
A signing ceremony was held in Tehran Operations Engineering said that his company
over the weekend between the Iranian Offshore was focused on maintaining output from the
Engineering and Construction Co. (IOEC) and supergiant South Pars gas field while develop-
Pars Oil and Gas Co. (POGC), with Oil Min- ing other gas assets, including Kish, North Pars,
ister Javad Owji and Mohsen Khojastehmehr, Bilal, Golshan, Ferdowsi, Farzad A and B, as well
CEO of the National Iranian Oil Co. (NIOC), in as the South Pars Oil Layer.
attendance. Kish was also one of many projects covered
A statement carried by the Ministry of by a memorandum of understanding (MoU)
Petroleum’s Shana news agency said that Kish’s signed by NIOC and Russia’s Gazprom in July
in-place reserves are estimated at 56 trillion 2022, which entailed investment worth around
cubic feet (1.59 trillion cubic metres) of gas, $40bn across field development, product swaps
noting that once fully developed, which will and the completion of midstream projects,
comprise four separate phases, it would have a including LNG facilities and pipelines.
production capacity of 120mn cubic metres per Development of Kish was kick-started in late
day. This is expected to take around 14 months March 2007 with a $2.2bn allocation of funds
to achieve. from the NIOC for the first phase, which will be
The project will see the National Iranian conducted by Iran’s own Petroleum Engineering
Drilling Co. (NIDC) drill 14 wells onshore and Development Co. (PEDEC).
Kish Island, while IOEC will build and install This was bolstered in 2010 with a further
a 200-km subsea pipeline capable of transport- $10bn loan agreement with an Iranian consor-
ing 28.3 mcm per day of gas and 11,300 barrels tium headed by Bank Mellat. However, owing to
per day (bpd) of condensate from Kish Island inadequate equipment and expertise, it was not
to the South Pars Gas Complex at Asalouyeh in until April 2014 that tangible parameters for first
Bushehr Province. phase development were agreed.
Kish was discovered in 2006. It lies under A previously announced development plan
Iran’s Kish Island and in addition to its gas for the field involved the construction of the four
reserves, it is estimated to hold at least 1bn bar- projected gas refineries in the Garzeh region in
rels of condensate. Of this, around 50 tcf (1.4 the southern Hormozgan Province, rather
tcm) of gas and 331mn barrels of condensate is than on the island itself – which is a key tourist
deemed recoverable. Along with the North Pars destination.™

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