Iran is set to finalise deals with leading local firms to carry out a major pressure-boosting project in its colossal South Pars gas field, state news agency IRNA reported on February 2, citing a senior official at the National Iranian Oil Co. (NIOC).

Reza Dehqan, the director of the NIOC Engineering and Development, told a press conference that the maintenance project in South Pars would bring in $780bn in revenue for Iran by 2052.  

South Pars, the world’s largest gas field, is shared between Iran and Qatar in the Persian Gulf, making Iran the second largest holder of gas reserves in the world only after Russia.

Dehqan said that the pressure-boosting plan would require a $17bn investment, part of which would be funded by the National Development Fund.

He went on to explain that the entire field has been split up into seven distinct hubs, with key Iranian companies already lined up to implement the project.

According to Dehqan, the contractors include Petropars, OIEC Group, MAPNA, and the Khatam al-Anbia Construction Headquarters, the economic arm of the Islamic Revolutionary Guard Corps (IRGC).

“The contracts have been drawn up and are ready to be signed with the contractors,” he said.

The official pointed out that 70% of the country’s gas supply and 40% of its petrol came from South Pars.

“It remains one of Iran’s most strategic energy assets and requires proper maintenance,” he said.  

“By implementing the project, we can stave off a worsening gas and petrol shortfall in the country,” he added.

Dehqan noted that the first phase of the pressure-boosting facilities would come onstream by mid-March 2029, at which point the initial production would be fed into the national grid.

He also said that most of the turbocompressors needed for the project would be manufactured by Mapna Turbine Engineering and Manufacturing Company, known as TUGA, as well as the Oil Turbo Compressor Co. (OTC).

“Over 70% of the project’s requirements will be met by leveraging the capabilities of domestic companies, contractors, manufacturers and suppliers.”

Meanwhile, Touraj Dehqani, the CEO of Pars Oil and Gas Co. (POGC), warned at the same press conference that South Pars had entered the second half of its operational life, making pressure-boosting a necessity to hold back a decline in natural gas extraction.  

Dehqani stressed that falling pressure was set to take its toll on the field in the coming years, posing a serious challenge to gas production in the near future.

“If carried out successfully, the project could extend the field’s productive lifespan by more than 20 years,” he said.

The POGC is Iran’s largest natural gas producer, extracting gas from 350 wells and 39 offshore platforms across 24 development phases of South Pars before sending it off to processing facilities in the port city of Assaluyeh which is home to 13 refineries.