In 1998, the development of South Pars Gas Field Phase 1 was awarded to Petropars. The utility facilities were operational in 2002 and the process facilities were operational in July 2003.

Petropars emphasized on the following objectives in Phase 1:

• Knowledge sharing especially in the field of project management
• Elevating Iranian production and technologies
• Successful completion of world-class projects upholding international standards
• Reducing the cost of execution for fundamental projects
• Obtaining economic and technical self-sufficiency
• Maximizing domestic capabilities

The project budjet was equal to 1.18 billion USD and the successful commissioning of this project was an important milestone for general contractors in Iran. The Iranian contractor share of this project was 69.12%, which was a new record in upstream projects in oil and gas of Iran.

Phase one utilizes 12 wells that are drilled in depths of up to 3670 meters and are located 105 Km offshore from Assaluyeh. Preliminary refining is done on the offshore facilities and then transported to Assaluyeh via a 32” submarine pipeline. Sweet gas is injected to IGAT III pipeline. Assaluyeh’s onshore facilities finalize refinement to produce:

• 920 million cubic feet of treated gas per day
• 40,000 barrels of stabilized condensates per day
• 200 tons of solid sulfur per day