$16bn Investment for North Pars

North Pars gas field is located 120 kilometers southeast of Bushehr province in the Persian Gulf waters. The field is 3,500 meters deep under water and is 10 to 15 kilometers far from coast.

North Pars holds more than 57 tcf of gas. Senior Iranian oil officials recently introduced North Pars along with tens of other projects up for investment as a new model of oil contracts – Iran Petroleum Contract (IPC) – was unveiled.

Development of North Pars gas field is estimated to need more than $16 billion in investment. Of this, $5 billion will go to upstream and $11 billion will go to downstream (LNG plants) sectors.

North Pars gas field was discovered in 1963 following a 3D seismic test. After that, six exploration, appraisal and development wells were envisaged to be drilled before the field could be developed.

In the years preceding the 1979 Islamic Revolution, Exxon and Lands were in charge of building structures for the development of North Pars. These activities continued until the development of North Pars came to a halt after the 1979 Islamic Revolution.

North Pars was then considered to be the largest gas reservoir in Iran and it received investment quickly. But after the discovery of the supergiant South Pars gas field, shared with Qatar, North Pars become the second priority for Iran’s petroleum industry.

South Pars gas field is in its final phases of development. Then comes North Pars.

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