SP 20&21 to Yield $6bn
Phases 20 & 21 of South Pars gas field were initially planned to start early production in June 2013. But due to certain restrictions including toughened sanctions, financial shortages and past mismanagement, development of these phases was delayed. They are expected to come online by the end of the current calendar year in March. Once these phases become fully operational, they will be producing 56 mcm/d of sour gas. Iran has gained $200 million from selling total sour gas produced by these phases since beginning.
Notwithstanding sanctions and low oil prices in world markets, the administration of President Hassan Rouhani has managed to operate its gas megaprojects in recent years. Senior officials of Iran's petroleum industry have prioritized South Pars development phases and managed to make big achievements. For instance, under-development phases of South Pars added more than 100 mcm/d of gas to the jointly owned reservoir's output. According to plans for South Pars, which Iran and Qatar share, the supergiant gas field is to see its output increase by 100 mcm/d this calendar year. Phases 20 and 21 account for around 28 mcm/d of gas output.
History
The contract for the development of Phases 20&21 of South Pars was awarded in 2010 to Offshore Oil Industries and Construction (OIEC) and Iranian Offshore Engineering and Construction Company (IOEC). The deal was valued at $5.332 billion. The development of these phases included offshore platforms, laying out offshore pipelines, the onshore section as well as drilling of appraisal and production wells.
Under the contract signed during the tenure of President Rouhani's predecessor, production from these phases had to start in 2013, but these two phases managed in September that year to inject sweet gas into national network after processing sour gas supplied by Iran Gas Trunkline 5 (IGAT5). IGAT5 receives sour gas from phases 6, 7 and 8 of South Pars.
420km Pipeline
In order to deliver gas from the platform of phases 20&21 of South Pars, more than 34,000 branches of pipeline, measuring more than 420 kilometers in length, have been installed offshore. This length is remarkable and is the same as distance between Tehran and Isfahan in central Iran. Add to this pipeline length such affairs as construction, coating, loading and installation at sea. Other work like flattening the surface, identifying subsurface complications, loading and transferring onshore pipeline has been done at the best quality.
Replacement with 50ml Products
Calculations indicate that with the development of Phases 20 and 21 of South Pars, the country will be earning $6 billion in revenue. Estimates also show that this amount of gas will replace 50 million liters of oil products.
Hiring Locals
The construction of platforms in phases 20 and 21 has required more than 3.6 million persons-hours of work without any accident. That created 600 direct jobs for mostly local people. That job, which included contracting, construction and supervision, was done under undesirable weather conditions and is indicative of resilient economy.
Some Equipment Made 1st Time
Maximum use of the capacity of domestic manufacturers in the platform for phases 20 and 21 resulted in the designing, construction and installation of control systems of these platforms which include ACD, DCS and F&G, which function like the heart of the platform, for the first time by Iranian companies.
Astronomic Figures
The giant structures in Phase 20 include 1,300-ton metallic structure, pipelines totaling 42,000 inches in diameter, 600 tons of mechanical equipment, 90 kilometers of cable laying, 900 instruments and electrical devices. Moreover, the four-legged jacket and piles weigh 3,200 tons, whose construction has cost 467,000 person-hours. In the offshore sector, the project for the construction of two offshore platforms included a total of 22 wells, two pipelines to carry gas from the main platforms to the onshore refinery with a total length of 210 kilometers, two pipelines for carrying glycol with a total length of 210 kilometers, as well as 26 kilometers of fiber optic for connecting offshore platforms to SPIFON1.
Environmental Units
While offshore operations in Phases 20&21 are nearing their end, the refinery section of these phases is making arrangements to receive gas from offshore facilities. The important point with the refining section of phases 20&21 is that environmental units, including sulfur recovery, have made significant progress. Efforts are under way to make them operational before offshore sour gas is injected. Construction of these units requires time due to the need for using sensitive equipment and sufficient time; however, their timely operation will make contribution to preventing the spill of contaminants into the South Pars area.
1mn Trucks
The total soil dug in Phases 20&21 of South Pars amounts to 3.8 mcm, while 1.2 mcm has been spread. In total, 5 mcm of soil has been displaced. That requires one million 10-ton trucks.
Iranian Drilling
In phases 20&21, for the first time, fully Iranian owned rigs have been used for drilling. Iranian companies have been hired to provide logistical services to drilling. A total of 88,000 meters of drilling has been done in 22 wells. That has been done without any problem or need for reparation.
Selling Gas Condensate
With the implementation of phases 20 and 21 of South Pars which would bring Iran's total gas output to 2 bcf, Iran would be gaining good revenue. Furthermore, 50 ml/d of oil products would be replaced with natural gas and Iran would be able to sell gas condensate in favor of its trade balance.
Gas Injection into National Network
Based on day and night efforts made by petroleum ministry, phases 20 and 21 of South pars are ready to come online. Since one of their platforms was installed last July, they have been producing 28 mcm/d of gas, used for boosting gas supply during winter. Moreover, 18 mcm/d of gas is being delivered via pipeline to the refinery of phases 15&16 for treatment. The remaining 9 mcm/d is injected into national network to be sweetened in phases 20 and 21.
$200mn Income
Since the platform of Phase 21 came on-stream, half a million cubic meters of sweet gas plus 800,000 b/d of condensate have been produced at the onshore refinery of this phase. They have so far yielded $200 million in revenue.