South Pars jacket costs rises, second jacket abandoned on seabed

Iran’s Petropars Co has warned of increasing steel prices for platform jackets for the South Pars gas field project’s phases 6, 7 and 8. Each jacket is now expected to cost between US$35-US$40 million.

In a statement Petropars’ Offshore Deputy Ali Ne’matollahi said, “A contract worth over US$30 million dollars has been signed for manufacturing three jackets for phases 6, 7, and 8 of South Pars gas field, but the contractor has claimed that his outlay has exceeded the contractual figure.” He did not elaborate further.

In related news, Ali confirmed the first jacket for the three phases was successfully installed in January. What was not successful, however, was the installation of the second jacket which was disrupted by bad weather and has now been abandoned.

According to the official, “The jacket for the second platform of the said phases faced a problem during installation in February and was abandoned in the area, which led to [a] US$4-US$5 million cost for fixing it to the sea bottom and was also followed by environmental problems.”

“Before installing the said jacket an appraisal well had been drilled at the cost of US$14 million dollars and if a new jacket is to be installed, it will need another US$14 million dollars for drilling a new well,” he added.


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