IOTC Exporting 6mb/d
Iran Oil Terminals Company (IOTC) is the last link in Iran’s oil and gas chain. It is operating in Kharg, Assaluyeh, Mahshahr and north of Iran. The main task assigned to this company is to receive, store, control both qualitatively and quantitatively and finally export crude oil, gas condensate and petroleum products. IOTC has grown into a well-known international brand as it deals with more than 1,000 vessels a year.
Iran Petroleum has conducted an exclusive interview with Pirouz Mousavi, managing director of IOTC. The full text is as follows:
Q: Would you please tell us about the export capacity of this company as its main mission?
A: Given the daily growing development of petroleum industry projects, particularly in South Pars, and the insistence of Iran’s petroleum minister on enhanced oil and gas production as the top priority of the petroleum industry, IOTC has in recent years undertaken the necessary measures to gradually boost the country’s production capacity. At present, this company is able to handle export of more than 6 mb/d of oil.
Q: The issue of oil and gas storage seems to have become a priority of Iran’s oil industry. This activity involves IOTC, too. Would you please tell us about the storage capacity of this company? What has the company done to boost its storage capacity?
A: We have to boost our storage capacities in order to be able to carry out our plans. To that effect, four storage tanks, with capacity of 1 million barrels each, were installed in Kharg Island in August 2014. We managed to increase our storage capacity by 4 million barrels. These new storage tanks have brought the IOTC storage capacity to 28 million barrels. We also plan to increase our storage capacity by 4 million barrels in Assaluyeh. These storage tanks are currently under construction.
Q: One of Iran’s Ministry of Petroleum’s plans is to develop Jask Port by building storage tanks and laying pipelines. Would you please tell us about that?
A: The 11th administration and the petroleum minister have insisted on the development of Jask. Besides laying a pipeline to carry oil from oil-rich regions in southern Iran to this region, a number of storage tanks are also to be built and crude oil exports from this region are to be followed up on. After these projects are completed, IOTC will start its activity and a new oil terminal will be established.
In collaboration with the private sector, oil refineries and petrochemical plants are to be built in Jask.
Q: Could you update us about the level of development in Jask?
A: Upon insistence of the Iran's minister of petroleum, job division has been conducted for this region and the priorities have been determined. By virtue of the president’s order, this project should come on-stream in two years.
Q: One of IOTC’s important plans is the issue of overhaul. How does the company deal with reparations which need to be done quickly?
A: That’s a good point you noted. Every year, we have to conduct a full inspection of installations of the company including pipelines and reservoirs. Given the high significance and risk of our job, this issue is very sensitive and complicated.
With regard to pipelines – an onshore and an offshore pipeline – we managed to carry out inspection by remote operated vehicle (ROV). This project which was designed to give assurances about the conditions of offshore pipelines involved scouring. More than 300 spots have been identified which need 100 meters of scouring. Several domestic contractors have expressed their readiness to handle the project. Soon, one of them will be selected to start reparations.
Another plan we have been following with regard to offshore pipelines has been inspection by pig running. A contractor has already been selected and operations will start soon.
In the onshore sector, all pipelines, measuring 38, 60 and 72 inches in diameter, are inspected routinely and they will be repaired soon, if necessary.
As far as storage tanks are concerned, every year 2.5 to 3 million liters of tanks need to be inspected annually.
Moreover, jetties 5&6 have already been repaired and are ready to resume work while jetties 12&13 are under repair. We also plan to have two jetties repaired by the end of the calendar year.
For the first time in the country, we managed to have two mooring points repaired. The reparation of the mooring buoys was done by IOTC engineers in Kharg Island in order to facilitate berthing more oil tankers.
Q: Do you have any plans to increase the number of vessels, as the company is to broaden its activities in coming years?
A: Yes, we have received permission for purchasing and building 8 vessels. Two vessels are to be purchased, while six others are to be manufactured for the first time in Iran. The possibility of the 360 degree rotation of the engine of these very large crude carriers enables them to leave jetties with flexibility.
Q: Would you please explain about the activities of this company as some new phases of South Pars are being commissioned?
A: Phase 12 has been exporting gas condensate. Moreover, gas condensate exports have started from phases 15&16, too. Assaluyeh has seen its gas condensate exports rise 20%. I have to note that with the development of other phases, IOTC is ready to enhance exports rate.
Q: IOTC has been among leading companies supporting Iranian manufacturers of commodities and equipment. Would you please explain more on this issue?
A: That’s right. In the past years, we mainly focused on the development of knowledge, research and technology and we have conducted numerous projects in cooperation with universities and research institutes. With regard to commodity and equipment, we have benefited from Iranian manufacturing. For example, for the first time, we produced microbe powder for fighting oil-contaminated soil in collaboration with one of Iranian universities. After successful field test, the powder was used by IOTC. National Iranian South Oil Company (NISOC) also requested to use it. We recently delivered 3 tons of the powder to this company.
Recently, a contract was signed with domestic manufacturers for the production of 20 SRJ devices which are made in Japan and used for resisting residues in storage tanks. Each system costs more than IRR 4 trillion, while its domestic manufacturing would cost half that amount.
Among other cases, I can also highlight the acquisition of technical knowledge, designing and manufacturing of metering and loading arms for the first time in the country. Here, I have no stress that we have managed to save IRR 70 billion by using domestically manufactured commodities and equipment.
Q: Given progress in nuclear talks between Iran and six world powers, foreign companies are likely to return to Iran to operate oil projects. Have you envisaged any plans for cooperation with these companies?
A: Yes, there are numerous opportunities for investment in IOTC. Enhancing the capacity of storage tanks, manufacturing of equipment which has not yet been made in the country and cooperation in development projects are among these opportunities.
Q: IOTC is equipped with one of the best oil terminal labs in the world. Would you please explain about that?
A: Yes. Our laboratory has been approved by all reference bodies in the world and is equipped with the state-of-the-art technology. It is known as the reference lab in the Middle East and is ready to provide services both domestically and overseas. We also plan to set up another lab in Assaluyeh to serve South Pars phases.
Q: IOTC recently attended an exclusive exhibition in Baghdad and put on display Iran’s petroleum industry technical and engineering capabilities. Why did you attend that exhibition and what do you think of the future of cooperation between Iran and Iraq in the petroleum industry?
A: The level of economic cooperation between Iran and Iraq is increasing and the petroleum industry is a strong point in this cooperation. Although common economic objectives constitute the main factor behind mutual industrial cooperation between the two countries, oil and gas sectors have always linked Iran and Iraq. There is hope for growing cooperation in the coming years. Propitious industrial opportunities in Iraq have been warmly welcomed by Iranian economic activists and these exhibitions provide a good venue for introducing these opportunities.
Meanwhile, a main challenge that both Iran and Iraq face with, stems from oil price fluctuations. Therefore, the Islamic Republic of Iran and Iraq have to move towards oil-independent economy. To that effect, providing marine services to oil tankers and vessels sailing in the Persian Gulf is a good platform for commercialization of the petroleum industry. Iraq enjoys good potential in its Basra oil terminal, while Iran has good infrastructure like Mahshahr exports terminal, Kharg oil terminal, Persian Gulf Floating Storage Unit in Bahregan Oil Center, and Jask oil terminal in the near future would be able to play this role effectively.
Meantime, destination markets have expanded significantly. To that effect, Iran and Iraq have to find their partners and broaden their ties. The route towards broadening ties between the two countries is irreversible. The leaders of both countries are determined to upgrade ties and in this regard, investors, businessmen and private sector activists in both countries are instrumental.
As petroleum industry managers, we have to provide the required ground for the development of activities and removal of existing obstacles in order to clear the way for mutual cooperation.
Crude oil storage, terminal operation, sea environment and bioremediation, upgrading crude oil, gas condensate and petroleum products’ exports processes as well as chemical lab services for crude oil and gas condensate were among IOTC potentialities showcased in Baghdad exhibition. These capabilities were welcomed by many Iraqi oil activists.