SP pressure boost project contracts worth $17b to be signed

Engineering and Development Manager of the National Iranian Oil Company (NIOC) has said that seven executive contracts for the South Pars (SP) pressure boost project, valued at $17 billion, are ready to be signed soon.

News ID: ۲۰۰۰۷۷۳

03 February 2025

EghtesadOnline:  This follows the completion of preliminary studies and the signing of initial agreements with four main contractors last year, worth up to $400 million, Reza Dehqan added.

Dehghan, speaking at a press conference Sunday, emphasized that the South Pars gas field, the world’s largest, supplies 70% of Iran’s domestic, industrial, and power plant gas consumption, as well as over 40% of the country’s gasoline needs.

However, after three decades of extraction by Iran and Qatar, the field has experienced natural pressure decline. Studies predict that by 2026, production will decrease by the equivalent of one South Pars phase (28 million cubic meters per day), and by 2028, it will drop by 1.5 phases (42 million cubic meters per day).

Dehghan warned that without timely intervention, this pressure drop could have serious implications for Iran’s energy security and economy. The pressure boost project is therefore a strategic priority for the Oil Ministry to maintain production levels. / Mehr