Iran starts drilling at South Pars oil layer

Iran started drilling at the South Pars gas field's layer, Pars Oil and Gas Company's managing director Mousa Souri said, Iranian media report.

Two drilling rigs are currently in operation at the oil layer, Souri added, the Pana News Agency reported. Some 1500 meters of drilling has so far been conducted, he noted.

Around $800 million is needed to develop the oil layer both in onshore and offshore sections, he said in June.

He added that production is expected to be online at the South Pars oil layer by March 2013. As much as 35,000 barrels of oil per day are expected during the first phase of project development.

Souri said two drilling rigs were to start operating in shared portions of the field this year. He added that his company was looking to rent a floating production, storage and offloading unit for operations in Iranian waters