Page 11 - MEOG Week 24 2021

MEOG PROJECTS & COMPANIES MEOG

Iran begins condensate injection at Soroush

IRAN IRAN’S Offshore Oil Co. (IOOC) has announced before sanctions took hold, with an initial output
this week that it has kicked off a project with the target of 60,000 barrels per day, and 190,000 bpd
National Iranian Tanker Co. (NITC) to inject in the second phase, though the 2016 discussions
condensate into the offshore Soroush oilfield to saw the latter increased to 205,000 bpd.
maintain its crude output. The condensate injection project is novel in
The project, which is the first of its kind in that gas is often used to increase liquids pro-
Iran, was initiated on June 10. duction, but it speaks volumes about Iran’s con-
The first cargo of condensate was sourced densate wealth that it is utilising the liquids to
from the supergiant South Pars gas field and produce crude.
transported to Soroush aboard NITC’s Forest The Islamic Republic produces more than
vessel, from which it was successfully injected 550.000 bpd of condensate, predominantly from
into the reservoir using existing wells. South Pars.
Soroush is located in the Gulf, around 80 km Until US sanctions were extended to cover
from Iran’s main export terminal at Kharg Island condensate in 2018, the majority of this output
and close to the Abouzar, Esfandiar and Norouz was exported to Asia, with Japan and South
fields. Following a production hiatus during the Korea the key buyers.
Iran-Iraq war, Soroush was awarded to Royal 2016 and 2017 volumes dropped by around
Dutch Shell in 2000 under a buy-back contract. 40% in 2018, falling to zero in 2020. In May last
The IOC was also believed to be in advanced year, as part of Iran’s ‘resistance’ economic model,
talks to sign an integrated petroleum con- Oil Minister Bijan Zanganeh announced that
tract (IPC) with Tehran in 2016 for Soroush direct condensate exports would be curbed in
and Norouz, which at the time sanctions were order to improve the availability of feedstock for
ramped up in 2012 had reached 88% completion. refineries and petchem facilities, thereby increas-
The originally envisioned $799mn project ing the output of added value petroleum prod-
had initially seen Shell as the key developer ucts including naphtha and gasoline.™

Week 24 16•June•2021 www. NEWSBASE .com P11