3rd Platform at SP14
As part of South Pars development plan, two offshore platforms became operational in SP14 last calendar year, bringing the number of operating top drives to 6. A third platform has been recently installed in this phase. Now, the SP14 development is nearly over.
By starting up platform 14B, 20,000 b/d of condensate, 100 tonnes a day of sulfur, as well as 250,000 tonnes a year of LPG and 250,000 tonnes a year of ethane would be processed. Therefore, the gas production capacity in the offshore sector of SP14 would reach 42 mcm/d (1.5 bcf/d).
In the meantime, in light of effective progress in the condensate production from the refineries of SP2 and SP3, this project would come online by next March. This project alone would allow for the sweetening of 80,000 b/d of condensate at the refineries of SP2 and SP3, which would be a big step toward reaching self-sufficiency in the petroleum industry.
Gas Output to Hit 1bcm/d
Development of South Pars would represent a major stride in Iran’s gas production. Completion of SP14 would bring Iran’s gas production to more than 1 bcm/d.
The average gas production during the first 10 months of last calendar year stood at 841 mcm/d, which is expected to reach 880 mcm/d next year and 950 mcm/d the following year. Gas production is expected to cross 1 bcm/d in the near future.
West Karoun Development
Development of oil fields located in West Karoun is also a key project for Iran. The fields located in that area are shared with Iraq. They have significantly raised Iran’s crude oil production capacity and would consolidate Iran’s position in international energy markets.
Last year, efforts got under way for increasing oil production capacity to 350,000 b/d in West Karoun. This trend is continuing this year. That is while 40,000 to 50,000 b/d of oil from the South Azadegan oil field is being processed by mobile facilities. This method of oil production can become operational in other joint fields, too.
Another priority for NIOC development projects in parallel with increased production, transmission and export of oil in West Karoun is the development of Phase 1 of South Azadegan, South Yaran, Phase 2 of Yadavaran and North Azadegan, pipeline and facilities at the Goureh-Jask pipeline and the Jask terminal with an approximate investment of $15 billion, which covers the integrated project for the development of West Karoun oil fields.
Goureh-Jask Pipeline
One of the most important projects under way by NIOC with regard to petroleum industry development is the national strategic project for the transfer of crude oil from Goureh to Jask and oil installations at Jask Port. This highly significant project tops the NIOC agenda for the transfer of 1 mb/d of light and heavy crude oil via a 1,000-km-long pipeline, five pumping stations, two pigging stations, 11 power supply posts, and 180-km-long power transmission lines. This project includes an oil terminal, 20 storage tanks with a total capacity of 10 million barrels, as well as three single-point moorings and an export terminal. With the start of operations for building access roads in the six projects envisioned in the Goureh-Jask crude oil pipeline project, as well as related installations and terminal, a big step was taken in favor of petroleum industry development in West Karoun, which would help finalize the project in the following year. In the meantime, maximum use of domestic potential and capacities in this strategic national plan has led to the domestic manufacturing of nearly 60% of line pipes needed in the country. In this project, for the first time, billets, slaps and sheets were manufactured from iron ore in the required sizes and based on standards. That would allow the petroleum industry to build gas sweet and sour gas pipes with thickness between 12 and 20 millimeters. The initiative undertaken by NIOC, has saved the country $200 million, while laying the foundation for putting an end to dependence on the import of hundreds of tonnes of such product a year.
Oil Storage Capacity Enhanced
As Western governments imposed a new round of tough sanctions on Iran, NIOC braced for crude oil storage as a strategy to thwart the sanctions. For this purpose, the agreement for the construction of a 10-million-barrel crude oil storage facility was finalized last year.
The oil storage facility construction in Jask Port is part of the Goureh-Jask oil pipeline project which is being seriously pursued by the government for the development of southeastern Iran. Furthermore, another objective set in this project is diversity in oil export, and downstream units’ feedstock supply points.
Known as a project supporting crude oil export from Kharg Island, this project is a strategic initiative aimed to ensure sustained crude oil production and complete and upgrade the petroleum industry value chain.
In the meantime, with the completion of storage facilities and measurement stations for gas condensate in Bushehr Province, it has become possible to stock condensate produced by some of South Pars refineries with a nominal capacity of 640,000 mcm (equivalent of 4 million barrels), supplying pumping stations in order to feed Bandar Abbas and Pars gas condensate refineries at the rate of 360,000 b/d and 120,000 b/d, respectively and delivering condensate to SPMs up to 600,000 b/d.
West Karoun Pumping Stations Nearly Online
The projects for building the West Karoun and Omidiyeh pumping stations are among successful projects of NIOC that came online last calendar year. This national project was aimed at the delivery of 254,000 b/d of light crude oil and 280,000 b/d of heavy crude oil from West Karoun to Omidiyeh, transfer of 280,000 b/d of heavy crude oil from Omidiyeh to Goureh installations and Bahregan oil terminal, delivery of 220,000 b/d of heavy crude oil and 150,000 b/d of light crude oil from West Karoun pumping station to the Bahregan oil terminal.
The area under the coverage of this project starts from 30 km southwestern of Ahvaz with the implementation of the West Karoun pumping station and extends eastward following the implementation of a light and heavy crude oil pipeline.
West Karoun Power Plant
The first phase of the West Karoun power plant is about to come on-stream, as part of development activities in the West Karoun area. The significance of this project is that in addition to sustained power generation, continued oil production will be guaranteed in West Karoun.
Gas Gathering
With the implementation of the flare gas gathering project in the petroleum industry megaprojects, which has been under way for years, the environment will be protected, while hydrocarbon consumption will be saved.
NIOC has undertaken effective measures in this regard. After the startup of the second phase of a gas gathering project in Khuzestan Province, the gas processing plant in Hengam Island was put on the agenda to allow for the processing of 80 mcf/d of gas. Until recently, flare gas equivalent of 14,000 b/d of oil was burnt in Hengam.
As part of NIOC plans assigned to National Iranian South Oil Company (NISOC), 90% of associated petroleum gas in NISOC-run areas should be gathered. To that end, 23 small-sized plants fully equipped with domestically manufactured items are considered as an effective step in job creation for local residents. The significant physical progress in other projects like NGL 3100, NGL 3200 and NGL Kharg, Hengam refinery and Bid Boland-2 indicates that pollution caused by gas flares in Khuzestan Province is close to vanishing.
Following the signature of an MOU for flare gas recovery and consumption in a South Pars refinery between NIOC, France’s Sofregaz and Sanat Saze Samin Iran, arrangements have been made for gathering associated gas in South Pars. Preventing national wealth from being wasted away with the recovery of 450,000 mcm/d of flare gas and preventing the annual emission of 500,000 tonnes a year of carbon dioxide are among the major achievements of this project.
Furthermore, in case this project turns out to be successful, the experience will be used in gas gathering in Ahvaz and equipping other South Pars gas refineries with this technology.
According to arrangements made with Pars Oil and Gas Company (POGC) and South Pars Gas Complex (SPGC), more than 50% of flaring in new refineries will be cut in the first half of the current calendar year, which would be a breakthrough. In the meantime, all flares are expected to be turned off by the end of the 12th administration.