Yet, closer scrutiny of the developments around this mega project suggests that Raisi’s announcements may be more about political posturing than actual progress.
South Pars stands as a testament to the strained relations between Iran and Qatar. The colossal gas field, which they jointly own, has been a bone of contention for years. The Iranian state media’s announcement about the inauguration of Phase 11 of South Pars during a gathering in a sports hall in Bushehr province seems more symbolic than substantial.
Oil Minister, Javad Oji, ambitiously stated that Phase 11 could potentially ramp up production to 56 million cubic meters of gas daily. Raisi’s administration projects an annual income of $5 billion from this phase. However, given Iran’s sanction-laden economy and its aging infrastructure, particularly in the oil and gas sector, such aspirations seem distant.
The development of South Pars’ Phase 11 dates back to Mahmoud Ahmadinejad’s regime when the Revolutionary Guards, known to have a stronghold over Iran’s energy sector, took charge. Alarmingly, reports suggest that due to mismanagement and restrictions, the Iranian government wasted a staggering $6 billion worth of gas in just one year.
#Iran's state officials and some western media outlets are reporting a surge in the regime's #oil sales. How much of this is true and what are the consequences? Find out:https://t.co/B1cUFG5ugf
— NCRI-FAC (@iran_policy) August 26, 2023
In 2018 alone, due to export limitations on LPG and storage constraints, Iran suffered a loss of $1.5 billion. Such figures stand in glaring contrast to Qatar’s $105 billion earnings from South Pars until 2021, compared to Iran’s modest $12 billion. The disparity becomes even starker when one considers that Qatar extracts nearly 90% of the total gas from this shared field.
The longstanding saga of Phase 11 and its adjacent Phase 12, which began in 2000, has only deepened Iran’s losses. The 23-year delay in its fruition has bolstered Qatar’s economic position, allowing it to harness the vast reserves far more effectively.
The regime’s skewed priorities, with a focus on international conflicts and alleged support for terrorism, have left the average Iranian struggling. The South Pars story isn’t just about a gas field; it reflects the mismanagement and misplaced objectives of a regime at the cost of its people’s welfare.
