Iran has high hopes for South Pars

TEHRAN, Sept. 7 (UPI) -- The $13 billion slated for developing the South Pars natural gas field will contribute to a rise in production there, a top Iranian gas executive said.

Iranian companies are taking over the bulk of the work at the giant South Pars gas field after international oil companies backed away from the region. Iran in May replaced Royal Dutch Shell and Spanish energy company Repsol with the Revolutionary Guard-owned Khatam al-Anbiya at two South Pars development projects.

Ali Vakili, the head of Iran's Pars Oil and Gas Co., told the oil ministry's Petroenergy Information Network that he hoped to raise $13 billion to develop the giant offshore gas field.

"(The) $13 billion would be invested in (the South Pars gas) field's projects by issuing bonds and using other resources in the current year," he said.

Tehran adds that when all phases of the South Pars field go on steam in 2012, the level of gas extraction there would double.

The South Pars gas complex in the Persian Gulf is held by Iran and Qatar. Tehran said there are more than 490 trillion cubic feet of natural gas in its portion of the giant offshore field.