“After China quit Phase 11 of South Pars, we submitted our request for the development and operation of this phase to Oil Minister [Rostam Qasemi],” Majid Razavian, deputy head of Khatam al-Osia Construction Headquarters for engineering affairs, said on Tuesday.
“Unfortunately in certain cases, Khatam al-Osia Headquarters is rumored to have won oil and gas projects due to its affiliation to Defense Ministry, but track records of Khatam al-Osia Construction Headquarters show that it is capable of financing oil projects while few companies can fully handle a project,” he added.
The official stated that the construction headquarters has been operating oil projects on an engineering, procurement, construction and finance (EPCF) basis over the past years.
In December 24, Iran warned it will cancel its contract with China for developing Phase 11 of South Pars due to foot-dragging by China National Petroleum Corporation (CNPC).
CNPC had agreed under a five-billion-dollar deal with the National Iranian Oil Company (NIOC) in 2009 to develop the only South Pars phase whose fate had not been decided.
Iran commissioned the development of Phase 11 to CNPC after France’s Total and Malaysia’s Petronas pulled out.
The Islamic Republic is currently producing 300 million cubic meters (mcm) per day of gas from South Pars, which contains nearly 50 percent of the country’s and 8 percent of the world’s gas reserves.
Covering an area of 3,700 square kilometers, South Pars gas field is located in the Persian Gulf straddling the common border between Iran and Qatar. The 28-phase field's reserves are estimated at 14 trillion cubic meters of gas and 18 billion barrels of condensate.
The country, which sits on the world's second largest natural gas reserves after Russia, has been trying to enhance its gas production by increasing foreign and domestic investments, especially in South Pars Gas Field.
mehr/281
