Iran to Start South Pars Oil Drilling by End of May, Shana Says

Iran’s Pars Oil & Gas Co. will start drilling the oil layer of the South Pars gas fields by the end of May, the Oil Ministry’s news website reported.

A drilling rig will be dispatched to parts of the field Iran shares with its neighbors by May 21, the company’s Managing Director Mousa Souri said in the article published by Shana yesterday. The company is negotiating with a group next week to buy or lease a floating storage vessel, he said.

The Persian Gulf state aims to start oil production from the South Pars layer at the end of the current Iranian year on March 20, Souri said. Some $800 million of investment is needed to develop the layer, and initial production is estimated at 35,000 oil barrels a day, he said.

Iran plans to produce 850,000 barrels a day from fields it shares with Iraq and Qatar by 2015, the director of combined planning at National Iranian Oil Co., Abdol-Majid Delparish, said last week.

To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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