Gas extraction and power project in Islamic Iran signed off for $3.8b

The Iran Offshore Oil Company (IOOC) struck a $3.8 billion deal on Tuesday with Iran’s Power Projects Management Company (MAPNA) for the development of the Persian Gulf’s Forouz B gas field and an associated gas-fired power project.
MAPNA Managing Director Abbas Aliabadi was quoted by the Shana news agency as saying that the field holds around 28 trillion cubic feet of in-situ natural gas and 180 million barrels of gas condensates.

Aliabadi said the development plan, which is set for completion within five and a half years, aims to produce one billion cubic feet of gas, 10,000 barrels of condensates, and 3,000 megawatts/per day of power in the first phase.

Aliabadi was quoted previously as saying that the project will export a percentage of the power to neighboring countries.

The National Iranian Oil Company announced in November that 20 development contracts will be signed by the end of the current Iranian calendar year (March 19, 2012) for oilfields in the Persian Gulf.

Oil Minister Rostam Qasemi said in August 2011 that the oil industry’s infrastructure needs more than 500 trillion rials (about $41 billion) of investment to achieve the goals of the country’s 20-Year Economic Outlook Plan (to end in 2025).