TEHRAN (PEDCO) – PetroIran Development Company, the Iranian oil and gas development company, has officially begun drilling operations for 35 wells in the shared South Pars gas field. The project, which is a part of the broader development of Phase 12’s Block SPD12B, marks a significant milestone in Iran’s efforts to bolster gas production from the world’s largest natural gas field.
In a statement made during the launch of the offshore drilling rig at the SPD12B platform, Alireza Sadeghi, CEO of PetroIran, emphasized the importance of effective time management in the timely delivery of the wells.
He highlighted that the success of this operation will greatly contribute to the country’s energy security by increasing the extraction of natural gas.
PetroIran, which has established itself as Iran's first general contractor specializing in oil and gas field development, has played a crucial role in testing various contractual models in collaboration with the National Iranian Oil Company (NIOC).
According to Sadeghi, this has not only enhanced the company’s technical expertise but also improved the NIOC’s negotiating power in securing major oil and gas development contracts.
Reflecting on the company’s journey, Sadeghi noted, "PetroIran has amassed valuable human resources, lessons learned, and technical knowledge over the years. The oil and gas sector in Iran is vast, and we need collaborative efforts across industries to ensure sustainable growth.
This field is large enough for all players to contribute without engaging in non-competitive practices."
The drilling and completion of the 35 wells will be executed under a structured four-package framework, aimed at significantly increasing gas output. These operations are critical in addressing the country’s gas supply-demand imbalance and ensuring energy security.
The project is also expected to boost the nation’s wealth by increasing condensate production, thereby supporting the industrial and refining sectors that rely on feedstock from South Pars.
Of the 35 wells, PetroIran is responsible for a portion under the second work package, which involves both engineering, procurement, and construction (EPC) and engineering, procurement, and drilling (EPD) components.
The EPD section includes drilling and completing nine wells across various platforms in the South Pars field, such as SPD12B, SPD15, SPD8, SPD2, and SPD19C. Once drilled, these wells will be connected to production facilities under the EPC section.
Sadeghi expressed optimism regarding the project’s outlook, citing the robust track record of PetroIran and its drilling subsidiary, DCI, in managing similar projects.
“With our offshore drilling platform and our experienced management and technical teams, we foresee the timely and efficient completion of these nine wells, ensuring they contribute to energy production and address the country’s gas imbalance.
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The CEO underscored the importance of precise planning and coordination with the goals of the Pars Oil and Gas Company (POGC) and their INFILL contract.
“We are confident that with rigorous time management, we will successfully deliver the gas wells on time, meeting the client's satisfaction,” Sadeghi said.
However, he also acknowledged the challenges involved in offshore drilling projects, particularly those posed by Iran’s current economic conditions.
"There are inherent risks in drilling operations, especially as we are unable to halt gas production from existing wells due to their critical role in supplying industrial and domestic gas needs.
This makes the project more complex, requiring utmost caution.”
Sadeghi also pointed to logistical challenges, including the harsh and variable weather conditions offshore and the need for continuous support from supply vessels.
“Timely delivery of materials is crucial to the smooth operation of the project, but given the remote location, we are often faced with difficulties in securing the necessary support.
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The CEO also touched upon financial obstacles, many of which stem from international sanctions that complicate access to foreign parts and equipment. "Due to the lack of local production capabilities for some vital components, we are heavily reliant on imported materials.
Financial backing to mitigate risks and ensure the smooth execution of drilling operations is essential."
South Pars, located approximately 100 kilometers south of Asaluyeh in the Persian Gulf, is the world’s largest natural gas field, shared between Iran and Qatar.
The drilling platform for this project was transported from the Forouzan oil field earlier this year, following seabed clearance and platform preparation in early June. Despite challenges such as adverse weather conditions and differences in the Spudcan diameter of previous rigs, the team remains committed to completing the project.