National oil company Petronas and its partners TotalFinaElf and Gazprom have brought on stream phases two and three of the South Pars gas field, located in the Persian Gulf offshore Iran.

Total investment in the project, signed with National Iranian Oil Co in late September 1997, was RM7.6 billion (US$2 billion), Petronas said in a statement Monday.

TotalFinaElf, the operator, has a 40 percent interest in the project, while Petronas through its subsidiary Petronas Carigali Overseas Sdn Bhd and Gazprom each have 30 percent stakes.

Phases two and three of South Pars are expected to produce two billion cubic feet of gas and 80,000 barrels of condenstate a day from 20 wells tied into two unmanned platforms.

Petronas said the gas produced would not be treated offshore but would be transported with the condensate and condesation water to the Assaluyeh treatmentplant in south western Iran via two 32 inch, 105 kilometre pipelines.

Other oil fields

The gas would be supplied to the Iranian domestic network, while the condensate would be sent to an offshore loading buoy for onward export, the statement said.

Petronas said apart from the South Pars gas project, Petronas and TotalFinElf are also involved in the development of Iran's Sirri A and E oil fields, also located in the Persian Gulf.

The two fields started production in October 1998 and February 1999, respectively and are now producing close to 100,000 barrels of oil a day.