Tehran, Tokyo confer on gas coop.

TEHRAN, May 14 (MNA) – PEDEC managing director has announced the launch of talks with Japan’s Marubeni Corporation on construction of a gas refinery in Kish Island.

Managing Director of Petroleum Engineering and Development Company (PEDEC) Abdolreza Haji Hosseinnejad touched upon the latest status of Kish gas field development saying “three developmental phases have been defined for the expansion of the Iranian field.”

The official said the first phase aims to reach a daily production of about 25 million cubic feet of natural gas as well as more than 11 thousand barrels of gas condensate; “accordingly, construction of 14 wells in the coastal section of the gas field has been put on the agenda.”

Haji Hosseinnejad emphasized that drilling project of the first phase is more than 75 per cent through asserting “according to the stipulated timetable, drilling of the field’s coastal wells will be accomplished by the end of the current Iranian calendar year (ends March 20, 2017).”

He also pointed to the progress made in the pipeline installation project stating “recently, a contract was inked on construction of the field’s power plant while the remaining onshore facilities will be implemented by the end of the current year.”

Referring to a large bid for establishing a gas refinery with a capacity of 25 million cubic meters, PEDEC managing director underlined “so far, nine groups including Iranian and joint foreign companies have submitted tenders.”

“In addition to Iranian companies, large oil firms from South Korea, Japan, France and China have put in their bids,” he continued.

Haji Hosseinnejad estimated the value of the gas tender for gas refinery construction as about 800 million dollars reminding “one prominent company participating in the offer has been Marubeni Corporation of Japan with which we have launched negotiations.”

Kish gas Fied is a giant gas field close to Kish Island in the Persian Gulf

Discovered in 2006, the field marks one of NIOC’s recent discoveries and holds 1,900 km3 of gas in place of which 1,400 km3 is recoverable. The field also holds at least 1 billion barrels of condensate of which at least 331 million barrels are recoverable.

By Mehr News Agency