MEOG: Kish gas development deal signed

Two state-owned Iranian firms signed a $900mn deal last week for the development of the country’s second-largest gas field in the Persian Gulf.

A signing ceremony was held in Tehran over the weekend between the Iranian Offshore Engineering and Construction Co. (IOEC) and Pars Oil and Gas Co. (POGC), with Oil Minister Javad Owji and Mohsen Khojastehmehr, CEO of the National Iranian Oil Co. (NIOC), in attendance.

A statement carried by the Ministry of Petroleum’s Shana news agency said that Kish’s in-place reserves are estimated at 56 trillion cubic feet (1.59 trillion cubic metres) of gas, noting that once fully developed, which will comprise four separate phases, it would have a production capacity of 120mn cubic metres per day. This is expected to take around 14 months to achieve.

The project will see the National Iranian Drilling Co. (NIDC) drill 14 wells onshore Kish Island, while IOEC will build and install a 200-km subsea pipeline capable of transporting 28.3 mcm per day of gas and 11,300 barrels per day (bpd) of condensate from Kish Island to the South Pars Gas Complex at Asalouyeh in Bushehr Province.