Iran’s Petropars Group has secured a $1.78bn contract to develop the Farzad B gas field in the Persian Gulf.

Pars Oil and Gas Company, on behalf of the National Iranian Oil Company (NIOC), awarded the contract to Petropars.

Through this contract, the oil company aims to produce 28 million cubic meters of sour gas per day over five years.

Under the contract, Petropars will be responsible for drilling of eight production wells, construction, and installation of two main and secondary wellhead platforms, reported Iranian news service Shana.

The firm will also build liquid separation facilities on the main platform.

The contract also includes the construction of a 230km-long offshore pipeline to transfer sour fluid to onshore facilities, as well as a 230km offshore pipeline to transport condensate.

The onshore facilities of Pars 2 Region in Kangan will be used to process gas produced by the Farzad B field.

According to estimates, the field holds 23 trillion cubic feet of in-place gas reserves and gas condensates of 5,000 barrels per billion cubic feet of gas.

ONGC Videsh (OVL), the overseas investment arm of India’s Oil and Natural Gas Corp (ONGC), discovered the gas field in 2008.

Later, a consortium of OVL, Indian Oil Corporation (IOC) and Oil India (OIL) offered to develop the field with an investment of up to $11bn.

However, talks over the field development between the consortium and Iran ended following the US sanctions in 2018.

The field is located in the Farsi bloc on the border between Iran and Saudi Arabia.