RIPI, NIOC to Conduct New Gas Hydrates Research Project
Gas hydrates represent a commercially viable alternative for oil and gas producing nations. A large number of developed countries have invested heavily in conducting studies on the sector. Several decades later, as oil and gas reserves keep dwindling, there may be no option but to resort to gas hydrates among other unconventional hydrocarbon resources.
Iran’s petroleum industry has already taken effective steps in this regard. Phase 1 and pilot research has already concluded. In Phase 2, the Research Institute of Petroleum Industry (RIPI) and National Iranian Oil Company (NIOC) "Exploration Directorate" are cooperating in the Sea of Oman.
“Discovering gas hydrates in the Sea of Oman – due to the geopolitical position of this region and proximity to high seas and Pakistan’s border as a strategic market and particularly the [Iranian] government’s special concentration on the development of the strategic Makarn area – can turn this region into an energy hub in the future,” Saleh Hendi, NIOC exploration director, said.
The agreement for Phase 2 of gas hydrate research project was signed between Hendi and RIPI director Jafar Tofiqi.
Under this agreement, which would be financed by NIOC Directorate of Research and Technology, access to the value chain of gas hydrate exploration technology will be studied during a 48-month period.
Elaborating on the project status, Hendi said: “With the implementation of Phase 1 of this project, gas hydrate and natural gas reserves (conventional and unconventional reserves) were identified in the Sea of Oman. In light of high deepwaters exploration costs in this region it was decided that Phase 2 of this research project be implemented in order to add to the certainty of the findings, which resulted in the signature of today’s agreement.”
He said RIPI’s research activities constituted a unique chance for the petroleum industry.
“This institute enjoys great potential and should we fail for whatsoever reason to benefit from these potentialities, that would constitute a fault to blame on the petroleum industry,” said Hendi.
Ebrahim Taleqani, acting head of NIOC Directorate of Research and Technology, referred to 14 macro-research projects pertaining to upstream oil industry.
He gave a positive assessment of interaction with research and academic centers, saying: “Planning to establish a center to study de-asphalting at the Amir Kabir University of Technology is among the results of such academic cooperation, which is on the agenda. That will be particularly effective in de-asphalting in West Karoun fields.”
He named the Kimia and Persian Gulf Pearl as two successful projects which RIPI has already accomplished, expressing hope that the new gas hydrate project would produce effective results.
For his part, Tofiqi said RIPI-NIOC cooperation would lead to further interaction.
He said: “I feel delighted to cooperate with NIOC directors who appreciate research and technology and value it. Placing trust in Iranian researchers is a cause of honor, and RIPI undertakes to use everything at its disposal for the optimal accomplishment of this project.”
Exploration Blocks for Iran E&P Firms
Following the signing ceremony, Hendi held a press conference to answer questions about exploration agreements.
He said plans were under way to award exploration blocks to Iranian E&P companies.
“In the near future, at least three exploration blocks will be awarded to domestic companies,” he added.
During Iran’s last Oil Show earlier this year, 14 exploration blocks were introduced to Iranian and foreign firms.
“Although the idea was to award these exploration blocks for the purpose of attracting foreign investment, in light of the current sanctions we have decided to push this process under the aegis of cooperation and negotiations with Iranian E&P companies," said Hendi.
He forecast three or four blocks to be awarded to Iranian companies in coming months.
The exploration blocks include blocks with high exploration potential located in mature sedimentary zones, as well as blocks in the new sedimentary zones.
Four blocks in the Zagros sedimentary zone include one block in Lorestan Province, one block in Fars Province and two blocks in Khuzestan Province (one near Dezful and one in Abadan Plain).
Three offshore blocks in the Persian Gulf area and three exploration blocks in Kappeh Dagh in northeastern Iran, one exploration block in the Moghan sedimentary area in northwestern Iran with proven hydrocarbon system, one exploration block in central Iran as well as the Taibad and Sistan blocks as two new sedimentary exploration blocks in eastern Iran were among other exploration blocks unveiled by NIOC Directorate of Exploration. Iranian E&P companies are expected to process some of them.
60% Success Rate in Exploration
Hendi also said that so far 60% of Iran’s total area had undergone exploration studies, adding that the rate of success in exploration wells (i.e. the ratio of successful wells to the total drilled wells) stood at 60%.
He said hydrocarbon was likely to exist in Bostanabad and Mianeh in northwestern Iran. “We will start studies in coming months in this regard, but generally speaking the Azarbaijan area has great potential.”
Touching on the Persian Gulf Pearl project, Hendi said: “The client in this project was the Iranian Offshore Oil Company (IOOC). Owing to fruitful cooperation between this company and NIOC Directorate of Exploration, exploration costs in the Persian Gulf have been significantly reduced; however, we should keep in mind that the results of exploration projects need to be updated regularly.”
He said that technological needs at NIOC Directorate of Exploration had been identified.
“In the research sector, we are faced with knowledge and management problems more than financial problems. We need to reach the conclusion that research is a late-yielding product and market. Therefore, in order to deal with future challenges we have to take advantage of research opportunity now,” he added.
Hendi said signature of agreements with five universities for developing technological and scientific infrastructure for hydrocarbon exploration was an outcome of the identification of technological needs by this Directorate.
He said that NIOC Exploration Directorate had upgraded the level of its cooperation with universities and research institutes in recent years with a view to forming a network of innovation and technology.
“Fortunately the research agreements signed with universities are progressing well and Phase 1 of these agreements has already been concluded or is in the final stage,” he said.