Iran's Newly Discovered Gas Field Holds 538 Billion Cubic Meters

EghtesadOnline: A new gas field has been discovered in southern Fars Province after surveys that lasted a year, director of development and engineering affairs at the National Iranian Oil Company said Sunday.

News ID: ۷۴۸۷۰۷

14 October 2019

Eram Gas Field is estimated to hold 538 billion cubic meters of natural gas in place, of which over 368 bcm are recoverable, ISNA quoted Reza Dehqan as saying.

It is located 200 kilometers south of the provincial capital Shiraz and 60km north of Asalouyeh. The find was made in a reservoir 3,900 meters below the earth’s surface.

Total natural gas production in the country has reached 810 million cubic meters per day. Iran (34 trillion cubic meters) and Russia (32.6 tcm) hold the largest proven gas reserves in the world, according to Financial Tribune.

Surveys on hydrocarbon fields show Iran’s recoverable natural gas reserves have risen by 283 billion cubic meters.

Eram Gas Field capacity is almost equal to one of the phases of the giant South Pars Gas Field located in the Persian Gulf straddling the maritime borders between Iran and Qatar. It covers an area of 9,700 square kilometers, of which 3,700 square kilometers belong to Iran.

It is estimated that the Iranian section of the major zone holds 14 tcm of gas and 18 billion barrels of condensates.

Iran is developing the mega gas project in 24 phases. Most phases are operational. More than $72 billion has been invested in energy projects since work started. Investments are forecast to rise to $87 billion.

Iran uses natural gas for heating purposes and as feedstock for thermal power stations that constitute more than 80% of its installed electricity generating capacity. Gas is also injected into underground reservoirs to increase crude oil recovery.

Other Fields

Saleh Hendi, the exploration manager at NIOC, in August was the first to confirm the discovery of new oil reserves in southwestern Dezful region.

Last December, Hendi said 35-40 new hydrocarbon reservoirs had been discovered across Iran.

He said Iran was scouring 60% of its total territory for new oil and gas reserves, including in places which, until recently, were deemed the least likely to have hydrocarbon-bearing formations.

Last week Oil Minister Bijan Namdar Zanganeh said Iran plans to begin operation at Farzad B Gas Field and a contract will be signed in the coming months.

Indian companies discovered the Farzad B gas field in Iran in 2008 and bid several times for its development.

Negotiations are underway with an Indian consortium led by ONGC Videsh Ltd, the foreign investment arm of India’s Oil and Natural Gas Corp. to expand the field off the Persian Gulf.

"There are no concerns regarding technicalities. But the Indian company (seemingly) has financial considerations that is why talks have not produced the desired results," Zanganeh said.

The National Iranian Oil Company is ready to sign the deal that has been plagued by delays and years of procrastination, he concurred, saying that the NIOC will continue work on the field with the help of local companies should the Indians walk away.