SP 17&18 Operational
After the operation of the last platform of Phases 17 & 18 of South Pars gas field on location B17 in February, the construction activity of another megaproject of South Pars drew to a close under the administration of President Hassan Rouhani. After the installation of the 2,300-ton platform, the phases would see their offshore output increase from 46 mcm/d to 56 mcm/d.
Ten years ago, Iranian media announced the signature of a $2 billion contract for the development of Phases 17&18. The agreement was signed between National Iranian Oil Company (NIOC) and a consortium of Petropars (29%), Oil Industries Engineering and Construction (OIEC) with a 50% share and Iranian Offshore Engineering and Construction Company (IOEC) with a 21% share. The consortium was led by Petropars.
This project saw ups and downs as companies involved in the development project were replaced and it was awarded to a consortium of Iran's Industrial Development and Renovation Organization (IDRO), OIEC and IOEC. However, changes in the management structure and the slow pace of work prevented the project from becoming operational under the previous administration.
The development of Phases 17&18, which lasted a decade, involved two sections prioritized by the government. The first stage included construction of two platforms, erection of a refinery and drilling of 22 wells. The first stage ended last September. Since then, 10 bcm of sweet gas has been injected into national network, more than 6 million barrels of gas condensate have been produced, more than 4 million barrels of which having been exported. Furthermore, more than 82,000 tons of ethane, more than 86,000 tons of butane and more than 135,000 tons of propane have been also produced, earning the country around $2.5 billion in revenue.
Platform Contractor Replaced
Given the fact that after the launch of platforms B17 and B18, the South Pars output would have increased to 56 mcm/d and due to the fact that Iran Marine Industrial Company SADRA's handling of platform construction was disappointing, authorities thought of a remedy. In March 2015, the project was assigned to Iran Shipbuilding & Offshore Industries Complex (ISOICO) which led to satisfactory performance.
4 Trains of Refineries
The onshore section of the project is being operated by IDRO and OIEC. Production is taking place in all four trains of gas treatment sections of the refinery. The third and the fourth trains receive their gas offshore from platforms 17A and 18A. The first and the second trains will be receiving their gas from phases 6 to 8 of South Pars before platforms 17B and 18B come online.
65% Share of Iranians
The important point that needs to be taken into consideration is that Iranians account for 65% of the job. Only the remaining 35% has been handled by foreign parties. Furthermore, 90% of engineering affairs of development of Phases 17 and 18 of South Pars has been handled by IOEC, IOEC, National Iranian Drilling Company (NIDC), Dana Energy Group and SADRA. A French company is responsible for 10% only. Add to this the 106 Iranian companies' handling of 99.5% of manufacturing. Forty-one percent of equipment has been purchased from Iranian companies.
10 mn Person-Hours Work
Around ten million person-hours have been spent on the construction of each of these four platforms in phases 17&18. That indicates the amount of work by ISOICO. The construction of these four platforms has required 40 people to work 120 years so that they would be able to construct such platforms.
Export Targets
One of Iran's major objectives at international level has been to acquire a proper trade balance in global gas markets through encouraging investors to contribute to gas projects and invest in them as the country sits atop huge gas reserves. Over the past three years, thanks to efforts made by government officials for positive international developments, the aforesaid objective has been achieved. Relying on its huge gas reserves and holding a positive view of its nuclear agreement with six world powers, Iran is seriously following up on gas export projects. Relying on this policy of government, the Iranian Ministry of Petroleum is prioritizing gas delivery to neighboring countries before developing its liquefied natural gas (LNG) industry in order to win a foothold in other markets.
Iran is set to keep increasing gas production over the coming three years. Once its gas output reaches 1 bcm/d by 2019, it would be possible for Iran to export a significant portion of this production increase.
$5bn Annual Revenue
Like previous year, this year's recovery from South Pars will surpass 100 mcm/d from phases under development. Phases 17&18, with an output of over 56 mcm/d, are instrumental for gas projection in Iran.
These phases, whose startup will not be after March 21 in the presence of President Rouhani, will give Iran more than $5 billion in annual revenue.
Facilities & Utilities
In the Phases 17&18 development, four 2,300-ton platforms, two 105-kilometer-long pipelines for transferring fluid from platform to Assaluyeh refinery, a 4.5-inch-diamater pipeline for carrying chemicals in order to prevent corrosion and freezing in pipelines, joint flood dams, gas sweetening and dehydration units, ethane production unit, gas liquid separation unit, demercaptanization from propane and butane removal of CO2 from ethane, increasing gas pressure for transfer to national network, gas condensate stability, sulfur recovery, liquid sulfur refrigeration, liquefied petroleum gas (LPG) storage tanks, liquefied gas transmission pumping facilities, as well as necessary utilities except for electricity are among onshore and offshore facilities of this project.
The objectives set for the development of Phases 17&18 are production of 50 mcm/d of refined gas to be injected into national network, 70 mcf/d of ethane for delivery to National Petrochemical Company (NPC) to feed ethylene unit, 1 million tons a year of LPG and 27 million barrels a year of condensate for exports as well as 40 tons a day of sulfur as a byproduct.
Refinery Installations
The onshore refinery of this project, which sprawls on 155 ha, includes 4 gas sweetening units, gas condensate stability unit and its storage tanks, gas sweetening and dehydration unit, gas refrigeration and ethane separation, propane and butane, sulfur unit, demercaptanization and gas accumulation before being exported, sulfur recovery and granulation and monoethylene glycol recovery unit. Steam and fresh water needed for cooling the refinery are supplied by a power plant serving South Pars projects.