Japan Starts Buying Parsian Condensate
Japan has become an importer of Iran’s gas condensates, following in the footsteps of its neighbor South Korea, the managing director of Parsian Gas Refining Company has said.
Farshid Ebdali Dehdezi said several cargoes of gas condensates, produced by Parsian Gas Refinery in Fars Province, have been exported to the two buyers in East Asia.
He said domestic petrochemical companies are also among Parsian’s customers for gas condensate, a type of ultra-light crude found in the Persian Gulf’s gas reservoirs.
“On average, Parsian produces 32,000 barrels of gas condensates per day and sends it to Assaluyeh (in Bushehr province) for export,” Ebdali said, adding that the refinery’s total gas condensate output in the past eight months reached 6.5 million barrels.
Output is projected at 10 million barrels by March 2017, which marks the end of the current Iranian fiscal year.
The daily gas processing capacity of the refinery is 75 million cubic meters, which is injected into the fourth phase of the national gas grid, known as IGAT-4, transferring South Pars gas to the central Fars and Isfahan provinces.
Parsian Gas Refinery reportedly processes 13% of Iran’s total gas output.
NIOC, Petronas Sign HOA
National Iranian Oil Company (NIOC) and Malaysian's Petronas have signed a heads of agreement (HOA) to conduct studies on Cheshmeh Khosh and South Azadegan oil fields, NIOC deputy chief for development and engineering Gholam-Reza Manouchehri has said.
"In the post-sanctions era, numerous requests have been submitted by international companies for cooperation with Iran's petroleum industry in the upstream, mid-stream and downstream sectors," he said.
"Since the study of these fields has also been assigned to other foreign companies and a competitive atmosphere is dominating a comprehensive development plan, that would offer the highest rate of recovery from the field would be prioritized," he added.
Manouchehri said tender bids would be held before making decisions about the development of the fields. He added that the companies that had signed HOA for studies would have more time to make assessments.
He cited a 5.5% rate of recovery from South Azadegan oil field, saying: "This rate of recovery should increase to around 20% and the production from this field should reach 600,000 b/d in coming years."
Mustapa bin Mohamed, the Malaysian minister of international trade and industry, has said that the removal of sanctions on Iran has created a good opportunity for Malaysia to return to Iran's oil sector.
Director of upstream affairs at Petronas Muhammad Anwar Bin Tayib said the signature of the HOA was a turning point in cooperation between NIOC and Petronas. He expressed hope that the two companies would continue cooperation in other sectors including liquefied natural gas (LNG).
Petronas has already cooperated with Iran in the development of Phases 2 and 3 of the giant South Pars gas field.
Foreign Investment in Iran Petchem Sector
Foreign investors from France, Germany, Japan, South Korea and the Netherlands have signed memorandums of understanding for operating petrochemical projects in Iran. These developments came in the wake of the implementation of Iran's nuclear deal with world powers, dubbed the Joint Comprehensive Plan of Action (JCPOA).
Marzieh Shahdaei, CEO of National Petrochemical Company of Iran (NPC), said the relative advantage of Iran's petrochemical industry was access to oil and gas feedstock, unique geographical position, access to high seas and a large-scale market.
Shahdaei, who is also deputy Minister of Petroleum for petrochemical affairs, said the NPC's main field of activity was its development, adding: "At present, 20 petrochemical plants are operating in Mahshahr, 12 in Assaluyeh and 18 others in other parts of the country."
She put at 64 million tons the annual production capacity of Iran's petrochemical sector.
Shahdaei said petrochemicals constituted the bulk of sale of domestic products, adding: "The highest value-added, the highest profitability and the highest levels of exports belong to petrochemical products."
She said that Iran's petrochemical industry was determined to enhance its installed capacity, adding: "To that end, we are looking for the attraction of foreign investment and development of investment in petrochemical industry."
12 MOUs Signed with Foreign Firms
National Iranian Oil Company (NIOC) deputy chief for development and engineering Gholam-Reza Manouchehri has said that 12 memorandums of understanding have been signed with foreign companies in the petroleum industry.
"Soon, 10 to 12 more memos are to be signed," he said.
Manouchehri said that NIOC had already signed heads of agreement with Royal Dutch Shell, France's Total, Japan's Inpex and Russia' Gazprom Neft for studies on Iranian fields.
He said that low oil and gas production costs and risks in Iran were among major factors for attracting investment.
"Given the current level of oil price, investment in upstream oil industry projects in the world will have no economic justification," he added.
Manouchehri said NIOC has always respected "investment security" in Iran's oil and gas industry. "In the operating sector as well, investment in the upstream oil and gas sector is of high security," he said.
He said that international tender bids are to be signed for the second phase development of Yadavaran and North Azadegan oil fields, adding that Chinese companies need to bid for these projects in order to be able to continue cooperation.
"China's CNPC is willing to go ahead with the development of North Azadegan field, but Iran has announced that it has to continue within the framework of a new contract and bid for the project. The Chinese finally accepted this proposal," said Manouchehri.
Regarding China's future presence in the development of Yadavaran field, he said: "Talks have been held with China's Sinopec in this regard and an international tender is to be held for the development of this field," he said.
Manouchehri said NIOC preferred a competitive atmosphere for the development of West Karoun area oil fields.
He also said that several companies have shown willingness to develop Esfandiyar oil field. Talks are under way with NIOC, he added.