No foreign contractor is involved in Phase 14 and it is the only project in the huge field undertaken in its entirety by domestic experts, Hamid Bazargan said on Saturday.
The new phase is due to produce 56 million cubic meters of gas per day, 400 tons of sulfur, 2,800 tons of propane, 75,000 barrels of condensates and 2,550 tons of petrochemical feedstock, IRNA reported.
Phase 14 will help meet domestic demand and supply feedstock to petrochemical units in the Pars Special Energy Economic Zone in southern Bushehr Province, Financial Tribune reported.
"As per an agreement between the National Iranian Oil Company and a consortium of eight Iranian companies headed by the IDRO Group, the phase is expected to come on stream by 2021."
Bazargan said contractors have laid close to 230 kilometers of subsea pipelines so far. Operations to drill 22 wells have been completed.
Phase 14 has two gas production lines with four offshore platforms, which are due to go on stream simultaneously.
The related onshore utility units, namely processing trains, sulfur recycling plants and gas injection units linked to Iran's Gas Trunkline, are up and running.
“Iranian firms have indigenized up to 80% of the refinery parts and equipment for Phase 14, which is a new record.”
Referring to the experience of IDRO in developing six phases of South Pars, he added: “Government policy to outsource major oil projects to domestic contractors (state or private) in recent years is a key factor behind empowering local engineers and generating job opportunities.”
IDRO Group was established in 1967 to carry out two key tasks, namely creating new industrial units and renovating old enterprises.
One of the largest companies in Iran, its objective is to develop the domestic industry sector, accelerate the industrialization process and export Iranian products. IDRO owns over 100 subsidiaries and affiliated companies both domestically and overseas.
South Pars Gas Field is the world’s largest gas field located on the joint border between Iran and Qatar in the Persian Gulf.
It is being developed in 24 phases. Iran’s gas production capacity now is over 800 million cubic meters a day. Supplies from South Pars make up nearly two-thirds of the total demand.
Iran uses natural gas for heating purposes and as feedstock for thermal power stations that account for 80% of electricity generation. More than $70 billion has been spent on South Pars since 2005.