Iran has awarded contracts worth approximately $17 billion to domestic companies for a major pressure-boosting project at South Pars, the world’s largest gas field, located on the maritime border between Iran and Qatar in the Persian Gulf.
At a ceremony on Saturday, President Msoud Pezeshkian, along with senior officials from the Oil Ministry, presented the contracts to four major Iranian energy firms: Petropars, Khatam Headquarters, OIEC, and MAPNA. These companies will work across seven zones within South Pars to increase the pressure of the massive gas reservoir.
According to the Oil Ministry’s news service, Shana, the project will involve the installation of 42 large rigs, weighing a total of around 420,000 metric tons. These rigs will include 14 pressure-boosting platforms, each housing 120 workers and technicians. The goal is to increase the pressure of the field by 1 billion cubic feet (28.3 million cubic meters) per day. Additionally, around 600 kilometers of underwater pipelines will be laid as part of the project.
The report also mentioned that 70% of the equipment and installations required for the project will be sourced from local suppliers, including shipyards along the Persian Gulf coast. The initiative is expected to generate 17,000 direct jobs, with an additional 50,000 positions in the broader supply chain.
This project will boost the gas recovery rate at South Pars from 54% to 75%, potentially generating up to $780 billion in new revenues from natural gas and condensate production, according to a senior project contractor quoted by Shana.
South Pars is vital to Iran’s energy sector, providing 70% of the country’s natural gas supply and 40% of the feedstock for gasoline production. The field consists of 40 offshore drilling rigs, hundreds of wells, and thousands of kilometers of underwater pipelines across 28 phases. Last month, production from South Pars hit a record 716 million cubic meters per day.
However, experts have warned that without pressure-boosting efforts, production could significantly decline in the coming years. Authorities in the Oil Ministry have stated that these projects will extend the lifespan of South Pars by 20 years. The first phase of the pressure-boosting project is expected to be completed by 2030, with an initial investment of $300-400 million already allocated for the onshore section.