Five Oil Majors in Competition for South Pars Phase 11

Five international oil majors are expected to bid on Phase 11 of the South Pars development project. The companies competing are BP, ENI, Petronas, Statoil and TotalFinaElf.

So far agreements have been signed for development work in 10 phases. Iran hopes to produce 260 million cubic meters of natural gas and 4.8 million tons of liquefied gas daily on top of 400,000 barrels of gas condensates and 3.5 million tons of ethane from these earlier phases of the project.

A tender for phase 12 of the South Pars project is due to be released soon and will involve drilling an evaluation well.

Iran holds the second biggest proven gas reserves estimated at 28 trillion cubic meters, second only to Russia. Half of these reserves are in the giant South Pars field which is shared between Iran and Qatar in the Persian Gulf.