Iran has revealed that it has approximately $50 billion worth of oil, gas, and related projects underway, largely funded by China and Russia. Surprisingly, Iran is also expecting significant financial support from Saudi Arabia, marking a historic shift in their relationship.
A substantial portion of this investment, around $20 billion, will be allocated to completing the development of the South Pars natural gas field, one half of the world’s largest gas field. This project is of critical importance to Iran, as South Pars already accounts for a substantial portion of its gas reserves and production.
Another $2.4 billion will be dedicated to concluding Phase 11, a contentious project that has been at the center of geopolitical tensions. Additionally, $1.6 billion will be used for other phases and drilling new wells. Furthermore, $15 billion will be invested in establishing gas compressor stations across the South Pars site. The remaining $1 billion will be directed towards expanding Iran’s liquefied natural gas (LNG) capabilities.
In conjunction with its LNG ambitions, Iran aims to enhance its natural gas output to at least 1.5 billion cubic meters per day by 2029. To achieve this, the country will allocate an additional $3.2 billion to develop various gas sites, with Russia taking a leading role in these projects.
Before the U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, Russia had signed significant MoUs for seven major oil and gas fields in Iran, making it the most active foreign player in Iran’s energy sector. These agreements involved companies such as GazpromNeft, Zarubezhneft, Tatneft, and Lukoil for various oilfields.
The financial and strategic backing of key players like China, Russia, and potentially Saudi Arabia marks a substantial shift in Iran’s energy landscape and could significantly impact its economic outlook.
