World Largest Oil Terminal in Iran
The Persian Gulf floating storage unit (FSU), which is one of the largest floating oil terminals in the world, was launched on February 8. Located in Bahregan Oil Center (BOC), this facility can store over 2.2 million barrels of crude oil.
Measuring 337 meters long, 60 meters wide and 33 meters high, the 51,400-ton terminal which has 21 storage tanks has been built by South Korea’s Samsung.
This terminal on average receives 200,000 b/d of crude oil from Soroush and Norouz oil fields. Two seven-kilometer pipelines supply oil to this facility. The storage unit is watertight and oil spill into the Persian Gulf is unlikely.
According to Iranian Offshore Oil Company (IOOC) which operates the FSU, no life-threatening accident occurred throughout the construction of the project thanks to the incorporation of fire alert and fire extinguishing systems.
FSU Startup
Saeed Hafezi, managing director of IOOC, said the terminal was launched despite international sanctions slapped on Iran. Addressing the project inauguration ceremony in the presence of Samsung representatives, Hafezi said the terminal has immediately started loading oil for exports.
He highlighted the sophisticated systems in the FSU, adding that all operations – including transport, installation and startup – have been conducted by Iranian experts while the constructor was required under the contract to do so.
Hafezi said IOOC has become a leading company in offshore exports.
The oil produced in Soroush and Norouz fields used to be exported through Sourena terminal, but the construction of the Persian Gulf FSU was planned as Sourena terminal was nearing the end of its life.
Hafezi said Sourena handled IOOC exports for more than four decades and that it is giving way to Persian Gulf FSU.
He predicted the FSU, which has cost $250 million, to be active for at least four decades. Hafezi said the standards and the insurance coverage for the storage facility are all Iranian.
He said that Sourena terminal is planned to be auctioned off.
Hafezi said IOOC is attracting investment through Engineering, Procurement, Construction and Financing Contract (EPCF) in order to reconstruct its oil terminals.
He said technical studies have already been conducted and that a tender is to be launched soon.
“Currently, there are 180 living quarters, production and operational offshore platforms in IOOC-run operation centers. After technical reviews, those in worse conditions will be prioritized for repair,” said Hafezi.
Samsung Interested in New Projects
Lee Beom-soon, a representative of Samsung, highlighted the effective cooperation of IOOC in the construction of this terminal. He expressed hope that this joint project would lead to long-term cooperation between Samsung and Iran’s oil and gas industry.
Lee said since the very beginning, international sanctions were hampering efforts to the construction of Persian Gulf FSU. He said the main objective behind this project was contribution to the development of Iran’s oil and gas projects through bilateral cooperation.
Lee said Iran’s petroleum industry is progressing fast, adding that there are numerous potentialities for cooperation.
Noting the high quality of the sophisticated equipment used in Persian Gulf FSU, the Korean industrialist said the systems used in this storage unit have been designed to bolster Iran’s oil exports.
Lee said Samsung takes pride in having constructed this storage facility.
Compliance with Standards
Mohammad-Ali Rahimieh, manager of BOC, said the contract for the construction of Persian Gulf FSU was signed in 2008. He said the Persian Gulf is like a very large crude carrier (VLCC) ready for Iran to export its crude oil.
He said all required standards have been met in the construction of Persian Gulf FSU. He said Soroush and Norouz oil, which has specific buyers, will be exported through this terminal.
Rahimieh said a pipeline, 20 inches in diameter, loads oil onto a tanker for exports.
He said Sourena exported 458 million barrels of crude oil throughout its life.
“Sourena exported 458 million barrels of oil within 844 cargoes since 2001 to February this year, in other words, five cargoes a day on average. Everything was done without accident,” said Rahimieh.
1mb/d Exports
Mohammad Ranjbar, manager of Persian Gulf FSU, said the floating storage unit facilitates export of up to 1 mb/d of oil. “This terminal can receive up to 200,000 b/d of oil from Soroush and Norouz fields,” he said as a Japanese oil tanker was loading oil for delivery to destinations.
He said the Persian Gulf FSU is among the biggest offshore structures in the world. He added that the facility cuts exports costs.
Ranjbar said this terminal is much more effective than Sourena terminal.
He said the construction of the terminal started in 2011. “This terminal was constructed by Korean companies, but startup of this equipment is an important issue and all this has been done by Iranian manpower.”
He said the facility is ready to provide full capacity services.
“Currently, all exports connections in the Persian Gulf have been installed and five pumps, each able to transfer 32,000 barrels per hour, are envisaged in the Persian Gulf. Two or three pumps are usually used in such cases,” said Ranjbar.
IOOC operates oil and gas reservoirs in six oil centers: Bahregan, Kharg, Lavan, Siri, Kish and Qeshm. Crude oil production platforms in the Persian Gulf, which are also being operated by IOOC, carry oil to terminals for exports.
The oil coming from Soroush and Norouz is stored in offshore platforms after being processed. Then, it is sent directly to the Persian Gulf FSU for exports.
Given the necessity of storing heavy crude oil produced by Soroush and Norouz fields and the necessity of replacing Sourena with FSU, the construction of an oil storage facility was considered. South Korea’s Samsung and STX companies were chosen by IOOC as contractor and subcontractor for the project.
The contract for this project was signed in September 2008. Construction operations started in May 2010 and ended in late 2011, two months ahead of schedule.
After construction, the terminal was moved towards Iran’s water and located in Soroush field north of Persian Gulf. It was installed on sheet piles which were earlier set 38 meters deep underwater.