Iran Drills Second South Pars Well

Earlier this month Iran began drilling the second exploratory well in the South Pars field, which is estimated to hold 5 billion barrels of oil, managing director of Pars Oil and Gas Co., Assadullah Salehi-Forouz, told state-run Tehran radio Tuesday.

In January of this year an international tender for the oil field was issued. Documents were issued to 20 international companies, but bids have yet to be received, he said, despite initial hopes the buyback contract would be awarded in April.

The development of the South Pars oil field, currently producing 5,000 barrels of oil a day, should raise production to 35,000 barrels per day in the first phase and 100,000 barrels per day at the conclusion of the second phase. Naft-Kav, a local, state-run company is also bidding on the field, according to local media reports. The first exploratory crude well in the field, primarily known for its 350 trillion cubic feet gas reserves, was drilled last year.

On a separate note, the second consignment of condensates from the South Pars gas field is ready for export, the managing director said. Last month, in South Pars phases two and three's first consignment, Iran exported 310,000 bbl of condensates from Assaluyeh port to the United Arab Emirates. Iran intends exporting the condensates from the gas field until the petrochemical facilities at Assaluyeh port comes on stream and uses the condensate as a feedstock. The construction of these facilities is still at its beginning stages. No date has been given for their completion.