Page 13 - FSUOGM Week 29 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

He said that NIOC had successfully negoti- possible but requires significant investment to
ated with Gazprom for the Russian firm to install maintain and add to production. An additional
pressure booster platforms at South Pars phase 50,000 barrels per day (bpd) of crude are pro-
11 (SP11). duced from the field’s oil layer.
“Exploration and concept studies on this SP11 is targeting the production of 2bn cubic
project have ended and foundational studies feet (57 mcm) per day of gas.
are underway ... we hope gas production from Petropars was left as the only remaining part-
Phase 11 will materialise in winter this year,” he ner in the $4.879bn project, for which stakes
told the semi-official ILNA news agency. Local of 50.1% and 30% were awarded to French
media outlets said that the deal with Gazprom super-major Total and China National Petro-
will see the Russian firm carry out $15bn worth leum Corp. (CNPC), respectively in July 2017.
of construction on pressure boosting platforms, The award was made for an Integrated Petro-
though this figure appears to loosely relate leum Contract (IPC) model, setting SP11’s pro-
to high-case scenarios for full-field pressure duction target at the time to 20.8bn cubic metres
installations. per year.
Iran is home to around 34 trillion cubic Khojastehmehr added that SP11 holds some
metres of proven natural gas reserves, with of the field’s largest and most complex reservoirs.
the supergiant South Pars accounting for In January, Petropars CEO Seyed Shamsedin
around 14 tcm as well as 18bn barrels of gas Mousavi said that commissioning would begin
condensates. The Islamic republic holds a on the first production platform at SP11 – SP11B
3,700-square km portion of the 9,700-square – by the end of September.
km deposit that is shared with Qatar, where it is Four years removed from the collapse of the
known as the North Dome field. Around 80% Joint Comprehensive Plan of Action (JCPOA),
of the field’s initial gas reserves are believed to a lack of alternatives for either Russia or Iran
remain in place. has seen Gazprom’s and NIOC’s paths cross for
The overall South Pars development a marriage of convenience. Together though,
includes 37 platforms across the field’s 24 phases despite the Russian firm’s output falling by
to produce 700-750mn cubic metres per day at around 31% on the back of sanctions, will
present of Iran’s roughly 1bn cubic metre per account for a just under 2bcm per day or around
day total. Tehran is aiming to increase output 18% of global supply. That alone is a powerful
from South Pars to 1 bcm per day as quickly as proposition. ™

NEWS IN BRIEF
Lithuania transports oil has decreased by 14.7% to 3.2mn tonnes, a 6000-metre deep gas well in the Poltava
region of central Ukraine, Ukraine Business
according to the State Customs Service.
products to Ukraine via $753.6mn (23.11%), Russia at $569.6mn News reported on July 21.
The top countries were Belarus at
Ukraine is badly in need of gas and the
Poland, bypassing Belarus (17.47%) and India at $283.6mn (8.7%). new well will reportedly produce 100,000
Other countries made up $1.7bn (50.72%).
cubic metres of gas per day, according to a
The state-run Lithuanian Railways is Ukraine’s oil exports dropped by 78%, statement from Naftogaz, the state-owned
transporting oil products for Ukraine via partly exacerbated by an impending fuel oil and gas company.
Poland, successfully avoiding Belarus, crisis this heating season. Ukraine banned “The work on the launching of the well
Ukraine Business News reported on July 21. the export of fuel, oil, gas and coal last was completed ahead of schedule, even
Orlen Lietuva produces the oil products month, instead saving them for domestic before the full-scale war. The production
which are then transported by the LTG use to prepare for the winter period. is working at full speed, and every day of
Cargo company between Lithuania’s Ukrainian President Volodymyr operation brings additional cubic metres of
Močkava terminal and Poland’s Trakiški Zelenskiy also urged the government and gas to the country,” said the head of UGV,
terminal, reported the Lithuanian local authorities to keep the cost of utilities Oleksandr Romanyuk.
publication Obzor.lt. From Poland, the down to pre-war levels to help citizens Ukraine currently has the lowest gas
products travel to Yahodyn in Ukraine - financially affected by the war during storage in Europe, with tanks only 21%
Polish carriers and the Ukrainian Railway winter. full causing alarm for the coming heating
transport them through this section. season. President Volodymyr Zelenskiy
The company plans to transport cargo mentioned last month that Ukraine will not
two or three times a week, and by the end of Ukraine's largest gas sell any gas and coal abroad but rather save
summer, their monthly volumes will reach it for domestic use to prepare for the winter
30,000 tonnes, according to LTG. In recent producer established a period.
weeks, 12 trains with more than 12,000 In the normal course of things, Ukraine
tonnes of oil products have left for Ukraine 6000-metre gas well in has enough gas to last until the middle of
along this route. March 2023. But if deliveries are cut off
Ukraine spent $3.3bn on oil products Central Ukraine tomorrow, gas will run out on October
in the first six months of the year, 56.3% 29 or at best the end of November if the
higher than the same period in 2021. The largest gas producer in Ukraine autumn is mild. Ukraine is very likely to
However, the physical volume of imports UkrGasVydobuvannya (UGV) established have an energy crisis this winter, as it has

Week 29 20•July•2022 www. NEWSBASE .com P13