Focus on Joint Oil and Gas Fields Development
Studying Iran’s oil track record has been a reflection of the persistence of the motto of foresight and hope by the administration of President Hassan Rouhani. The focus on the development of jointly-owned oil and gas fields as a key foreign policy shows that oil production in West Karoun’s oil fields which Iran shares with neighboring Iraq has exceeded 350,000 b/d, while the giant offshore South Pars gas field has been racing ahead at an acceptable pace.
Iran sits atop the world’s largest combined oil and gas reserves. The country has grown into a major supplier of energy in the world. Since several years ago, National Iranian Oil Company (NIOC) has been recognized as the second largest oil company in the world. NIOC is now Iran’s powerful arm in exploration, drilling, extraction and production of hydrocarbon resources. From this perspective, efforts have been under way for the realization of major policies in Iran’s petroleum industry amid widespread activities by NIOC as an influential company in the Organization of the Petroleum Exporting Countries (OPEC) and the standard-bearer of regional and global cooperation in the Middle East. To that effect, bringing SP13, SP14 and SP22-24 to full capacity, increasing crude oil production capacity in West Karoun, laying out the Goureh-Jask Pipeline and building a crude oil export terminal in Jask Port are among strategies envisioned by Minister of Petroleum Bijan Zangeneh for NIOC in the current calendar year. Once these strategies have materialized, the bulk of objectives set in the country’s political and economic development outlook would come true.
South Pars, Oil Development Frontline
South Pars is an indicator of determination and willpower in Iran’s petroleum industry. The field, which Iran shares with Qatar, holds by itself half of Iran’s total gas deposits. The field is so vital for Iran that NIOC has adopted major plans for its development.
Ever since the Rouhani’s first administration took office, the roadmap designed for the field concentrated on the completion of incomplete phases. This strategy came to fruition, and by March 2015, SP12 – as the largest phase of South – was officially inaugurated by President Hassan Rouhani.SP12 is equal three standard phases. SP15 and SP16 became operational in the same year. Finally, when Rouhani’s first administration was bowing out, SP17, SP18, SP19, SP20 and SP21 (equal six standard phases) came to production stage. For the first time in 12 years, Iran and Qatar became equal in recovery from South Pars. During the first year of President Rouhani’s second administration, SP14 also became operational while SP13, SP22, SP23 and SP24 were inaugurated last March.
According to the timetable set for South Pars, this supergiant field would see its gas production reach 800 mcm/d with a condensate output of more than 1 mb/d. That is part of Iran’s oil and gas recovery enhancement plan under the country’s economic resilience initiative.