The Farzad B gas field was discovered by India's ONGC Videsh in 2008
Iran’s Petropars has secured a $1.78bn contract from the National Iranian Oil Company (NIOC) to develop the Farzad B gas field in the Persian Gulf.
The contract involves the production of 28 million cubic meters of sour gas a day from the offshore field within five years, reported the Iranian oil ministry’s official Shana news service.
The onshore facilities of Pars 2 Region in Kangan are planned to be used to process gas produced by the Farzad B gas field.
Under the contract, Petropars will be responsible for drilling of eight production wells, construction and installation of two main and secondary wellhead platforms as well as construction of liquid separation facilities on the main platform.
The contract also covers construction of a 230km-long offshore pipeline to transfer sour fluid to onshore facilities and a nearly 230km offshore pipeline to transport condensate to land.
Located in the Farsi bloc on the border between Iran and Saudi Arabia, the Farzad B joint gas field is about 20km from the Farsi Island.
The field is estimated to hold 23 trillion cubic feet of in-place gas reserves, according to the Pars Oil and Gas Company. It also contains gas condensates of 5,000 barrels per billion cubic feet of gas.
ONGC Videsh (OVL), the overseas investment arm of India’s state-owned Oil and Natural Gas Corp (ONGC), discovered the gas field in 2008.
In June 2009, a consortium of OVL, Indian Oil Corporation (IOC) and Oil India (OIL) announced plans to spend around $5bn to develop the Farzad gas field.
Negotiations between the consortium led by OVL and Iran regarding the development of the field ended following the US sanctions in 2018.