MEOG: NIOC launches second phase of South Pars Oil Layer

The National Iranian Oil Co. (NIOC) held a ceremony last week to kick off work on the second phase of the South Pars Oil Layer (SPOL) project on the final day of a conference in Tehran.

The ceremony was held during the Iran Oil Show 2023 and attended by NIOC managing director Mohsen Khojastehmehr, Pars Oil and Gas Co. (POGC) managing director Mohammad-Hossein Motejali and vice chairman of the Parliament’s Energy Committee Mousa Ahmadi.

This follows the signing in March 2022 of a $530mn, 20-year contract with an unnamed foreign company to leverage enhanced oil recovery (EOR) techniques for the second phase of development of SPOL to increase output.

Under that contract, according to Ministry of Petroleum (MoP) media outlet Shana, “the contractor is obliged to provide all the necessary financial resources to implement the project, including direct capital costs, indirect costs and operating costs”.

The contract covers “upgrading and modifying the existing processing vessel and platform, overhauling existing wells, digging new wells, including production and water injection and assessment wells, construction of oil discharge and loading system, and strengthening the existing water injection system”.