Iran's Share in South Pars Equals
120 Years of Oil Export Revenues
At present, about 48 billion dollars worth of projects are underway in
South Pars Oil and Gas Company
Mousa Soori, new managing director of
South Pars Oil and Gas company in an interview explained about special
situation of South Pars gas field in the Iranian economy.
South Pars important as energy capital of Iran?
Pars gas field is one of the most important and most valuable economic
resources and a unique national treasure. The Iranian part of the field is
3,700 square kilometers with 14,200 billion cubic meters of gas and 19 billion
barrels of gas condensate. Based on the existing estimates, if every barrel of
oil is sold for 50 dollars, the field is worth 4,400 billion dollars (if crude
gas is sold) and if every barrel of oil is sold for 100 dollars, the value of
crude products from the field will hit about 8,800 billion dollars.
understand this, a review should be made of Iran's oil revenues in the past
100 years. Iran
has earned 880 billion dollars in that period and if every barrel of crude oil
is taken to be worth 50 dollars, that revenue can be updated to 3,600 billion
dollars. As a result the value of the existing gas of South Pars field will be
equal to at least 120 years of oil exports and sales (at 50 dollars per
barrel). A more realistic estimate (with 100 dollars per barrel for oil) will
upgrade the figure to 240 years of oil export and sales. If this huge national
wealth is turned into petrochemical products to create added value in the
country, its total worth will increase 5, 7, or even 10 times. If the value of
crude oil accompanying gas in South Pars field is added, the true value of
this huge national wealth will be unparalleled both in the country and even in
country is rapidly exploiting this shared trove and all opponents of Iran are
supporting it. In addition to economic and financial value of the field,
development of South Pars gas field and increased production of oil and gas
from the field will lead to prosperity of many downstream and conversion
industries, which in addition to Assaluyeh and Bushehr province will be a
great economic impetus for other provinces by yielding intermediate products
and feedstock for various production plants.
example, the planned ethylene pipeline which will run for 2,500 km to cover
southern and western provinces, can take economic development to other
economic and industrial sectors of the country and can give great economic
boost to those provinces. In addition to supplying about 50 percent of the
country's consumed gas, South Pars is also providing needed gas for injection
into oil fields in Khuzestan province. In addition, the field is providing
valuable products for export to world markets which in addition to increasing
gross domestic product also increase the country's trade balance. When 29
phases of the field are made operational, its effect on generating national
wealth will increase rapidly and Iran may be able to earn, at least, 100
billion dollars and, at most, 200 billion dollars a year by selling South Pars
economic and social importance of South Pars products in addition to job
creation, oil diplomacy, increased bargaining power of Iran in international
interactions, and increased clout in energy markets are added, economic,
social, political and international importance of South Pars gas field will be
more evident. Since Iran ranks the second in the world in terms of oil and gas
reserves and is the second biggest exporter of crude oil among OPEC members,
special attention should be paid to effect of oil and gas on energy security
as well as economic, social and political security of Iran and the world.
Energy, especially oil and gas play a special role in national security as
well as economic, social and political stability of the world as no immediate
substitutes to them are available.
Pars be considered a production, economic, and scientific zone of the world?
Scientifically speaking, South Pars gas field is a totally productive and
economic zone because all investments are made to produce oil, gas and
petrochemicals. At present, all products and revenues of this zone result from
production of oil, gas and petrochemicals and this is very important. I should
also add that products of South Pars gas field are commodity; that is, they
are not of service type.
all scientific definitions in economics, South Pars is not only a production
zone, but also a very important economic zone. Very important goods and
products are yielded by this zone with high global demand for buying them.
Therefore, South Pars enjoys high economic value. In addition, South Pars is
the world's biggest gas reservoir. Economically speaking, that part of the
field which belongs to Iran accounts for 8 percent of total gas reserves of
the world (equal to 14,200 billion cu. m. of gas and 19 billion barrels of
condensate) which is worth over 4,400 billion dollars (if every barrel of
equivalent crude oil is sold for 50 dollars).
few economic zones in the world with the same area and value each of which are
one of a kind in terms of production and economic worth. Economic production
and productive economy are interrelated. All products with market value are
economic products too. Meanwhile, the necessity of production efficiency and
better management of resources increases economic value of South Pars gas
field. If job creation and supply of needed fuel from South Pars is taken into
account, it would be clear that South Pars products influence such
macroeconomic indices as gross domestic product, national revenue, investment,
employment, exports and fuel production. Under presence conditions, this is
the most active investment area of the national economy.
projects are underway there?
present, more than 48,000 billion tomans (about 48 billion dollars) worth of
projects are underway in South Pars Oil and Gas Company alone (excluding
petrochemical and other forms of investment). Each year, more than 12 billion
dollars is added to that investment (amounting to 60 billion dollars in the
next five years). Such huge investment in production is the most important
proof to value of South Pars gas field and somehow alludes to its uniqueness
in terms of economic value and production.
Therefore, South Pars gas field affects both micro- and macroeconomic indices
of the country. Microeconomic indices include supply and demand, production,
production costs, added value, production chain, major tender bids for goods
and services, import of industrial goods, customs affairs and discharge of
goods, loading and offloading, port affairs and shipping. It also affects
monetary and financial affairs such as stock exchange and even the amount of
liquidity and circulating money. Moreover, presence of a great number of
specialists and prominent managers of the Iranian oil and gas industry at
South Pars which has led to high-level technology transfer and managerial
feats in the area of oil and gas production and development is another major
index which attests to scientific value of the field.