Kish Gas Field Development Plan

Objectives

Petroleum Engineering and Development Company is to implement the three phases of Kish Gas Field Development Plan to achieve the following objectives:

-        Transfer of 3 billion cubic feet a day of gas to Kish Gas Field by constructing onshore and offshore pipelines

-        Transfer of sour gas to the refineries located in the mainland

-        Sour gas processing at the refineries located in the mainland to produce 2700 million cubic feet of light gas for domestic consumption and 45 thousand barrels of condensate

Location

Kish Gas Field (below Kish Island in the Persian Gulf) is located 30km east of Lavan Island, in the southwest of Lengeh port and northwest of Siri Island adjacent to Hendurabi Islands.

The aforementioned project is made up of two parts:

-        Wellhead facilities on Kish Island as well as offshore platforms for gas production

-        Onshore refinery facilities at Garzeh region in Hormozgan province

In order to avoid minimum environmental effects on Kish Island, all refinery facilities are to be set up at Garzeh region (on the coast of the mainland) adjacent to Aftab port.

Kish Island:

Wellhead clusters, land pipelines to transfer gas to refineries, offices, guest houses, warehouses, Persian Gulf offshore facilities, offshore platforms for gas extraction and separation

Garzeh region/Kalat (subordinate of Lengeh port)

Gas refinery, power plant, water and wastewater treatment plant, gas transmission pipelines, reservoirs, offshore platforms, condensate loading, organizational residence, cultural-residential complexes and access roads

Executive Activities

Considering the expansion and scattering of the region at sea and land as well as the reservoir capacity, Kish Gas Filed development project is to be carried out in 3 phases.

Phase1:

In phase 1 of the development plan some 1 billion cubic feet of gas is to be produced from the reservoir.

Executive activities:

-        Drilling of 2 delineation wells along with provision of reservoir MDP

-        Drilling of 2 delineation wells, 6km to the southwest of Kish Island

-        Collecting, reviewing and analyzing the existing data on the field

-        Geology studies to determine reservoir characteristics

-        Construction of a master static/dynamic module of reservoir simulation

-        Forecasting different conditions of production

-        Examining and evaluating surface facilities

-        Economic as well as feasibility studies

Drilling of 12 production wells at two Clusters located on Kish Island

-        Construction and installation of two devices (Pony-Base) to set up drilling rigs

-        Drilling of 12 wells and overhaul of one onshore well to produce 1 billion cubic feet a day of gas in the first phase

Construction of refinery facilities and gas transmission pipelines

-        Transfer of 1 billion cubic feet a day of gas from 13 onshore wells to the gas refinery to be processed and produce light gas and condensate

-        Construction of infrastructure facilities such as electric power plants, water treatment plant, industrial effluent treatment plant and access roads.

Phase 2 &3:

-        In each of the two phases (2&3), one billion cubic feet of gas per day is to be produced.

-        The output gas is transferred to gas refinery to produce light gas and condensate.

How development of phase 1 is implemented

By drilling 12 production wells together with overhauling the existing delineation well, some 1 billion cubic feet of gas is to be extracted from the 13 wells placed at the two clusters.

The outlet gas is transferred to the coast of Kish Island through a 10-km land pipeline and from there to the coast of the mainland by a 17-km-long offshore pipeline, then by a 3-km land pipeline to the gas refinery of the mainland, and finally, after processing and producing light gas, it is transmitted, by a 94-km, 56-inch pipeline, to the 7^th cross-country (IGAT-7) pipeline of the country.

The condensate obtained from gas processing is transmitted to the SBM (Single Buoy Mooring) in the Persian Gulf via 5-km-long offshore pipeline to be exported.

Given the development of the field by using buy-back agreement, a consortium of Bank Mellat, Petro Pars and Pearl Energy, under the name of KOGC, has commenced talks with National Iranian Oil Company to conduct design and development of the field after providing MDP of the field and finalizing contract enclosures.