The National Iranian Oil Company (NIOC) has signed a contract worth $1.78 billion with Petropars Group for the development of Farzad B Gas Field in the Persian Gulf.

The deal was signed this week in a ceremony held in the presence of Iranian Minister of Petroleum Bijan Zangeneh in Tehran. Mohammad Meshkinfam, the CEO of Pars Oil and Gas Company, on behalf of the National Iranian Oil Company, and Hamid Reza Masoudi, the CEO of Petropars Group, signed the document.

The purpose of this buyback contract is to achieve a daily production of 28 million cubic meters of sour gas over five years.

The gas produced by this field will be transferred to the onshore facilities of Pars 2 Region in Kangan for processing.

In the onshore facility, the gas condensate will first be separated from the sour gas and then transferred to the South Pars Refineries of Phases 12 and 19 for stabilization.

Farzad "B" joint gas field is located in the Farsi bloc on the border between Iran and Saudi Arabia and at a distance of about 20 km from the Farsi Island.

According to the Pars Oil and Gas Company, the amount of gas in-place in the field is estimated at 23,000 billion cubic feet. The gas condensate is estimated at about 5,000 barrels per billion cubic feet of gas.

KeyFacts Energy: NIOC Iran country profile