Natural Gas: Environmentally-Friendly and Green Fuel

The biggest threat to the future of our planet and human beings is environmental pollution whose hazardous consequences can make life impossible.

Environmental pollution has in recent decades grown into one of the major concerns of human beings. Industrial development and environmental pollution have given rise to an unresolved equation.

Under such circumstances, not only the industry but also the economy and global trading are vying in the environmental sector. Future will belong to nations and companies that would be instrumental in allaying environmental concerns by benefiting from clean and green sources of energy.

Although over recent years extensive investment has been made in renewable energies and limited success has been achieved, human communities continue to remain dependent on hydrocarbon resources. Among fossil fuels, natural gas is the friendliest to the environment and is the least pollutant fuel compared with other fuels. Therefore, the coming decades will belong to gas and the nations sitting atop gas reserves will play a key role in the energy market and struggle against environmental pollution.

Iran holds over 33 tcm of natural gas, or about 17.5% of the world's total reserves. Iran's gas production currently crosses 800 mcm/d, which would exceed 1.2 bcm/d once the remaining development phases of the giant offshore South Pars gas field become operational.

Iran accounts for only 6.1% of global gas production and 1.5% of global gas trading. The country could raise its share to over 10% and as a major gas supplier meet the needs of India, China, East Asia and even Europe.

The commissioning of SP13, SP22, SP23 and SP24 shows Iran's firm determination to that effect, regardless of unlawful and unilateral US sanctions.

Irresponsible and selfish politicians like US President Donald Trump wrongly imagine that sanctions and threats would bring time backward. They intend to sacrifice the future of human community for their own economic interests.

Despite all sanctions, threats and pressures, Iran's petroleum industry remains committed to its responsibilities. By developing its gas fields, Iran will fulfill its environmental obligations.

New South ParsPhases Boost Iran Gas OutputIn

the final days of Iran’s last calendar year to March 2019, several phases of the giant South Pars gas field became operational. The phases would bring Iran’s share of production from the jointly-owned offshore reservoir to 610 mcm/d

Iranian President Hassan Rouhani and Petroleum Minister Bijan Zangeneh were present at the inauguration ceremony for SP13 and SP22-24. The total investment made in the new development phases amounts to $11 billion. Given Iran’s gross domestic product (GDP) - $427 billion in the calendar year to March 2018- the SP13 and SP22-24 projects account for two percent of Iran’s GDP.SP13 and SP22-24 are aimed each to produce 56 mcm/d of sour gas, 75,000 b/d of gas condensate, 400 tonnes a day of sulfur and 1.05 mt/y of liquefied petroleum gas (propane and butane) as well as 1 mt/y of ethane to feed petrochemical plants.The SP13 and SP22-24 products would earn Iran about $5 billion a year in revenue. Working under SanctionsPresident Rouhani boasted about the inauguration of the megaprojects in Assaluyeh against the backdrop of the US’s imposition of “illegal” sanctions on Iran to ramp up pressure on Iranians.He said the South Pars megaprojects was an indication of Iran’s national strength, adding: “Iran was recovering gas from 10 phases of South Pars in 2013, but with the startup of 15 more phases over the past five years, they are now 25 phases, which means Iran’s gas production has increased.”Rouhani said Iran’s gas production boost over recent years ended the country’s dependence on gas imports in winter.“Until several years ago, Iran was dependent on gas imports in winter, as well as gasoline and gasoil, but in recent years it has become self-sufficient in all sectors,” he added.Rouhani referred to Western sanctions on Iran’s gasoline imports, saying: “As a result of the increase in gasoline production capacity, gasoline sanctions would no longer make any sense for us and we no longer need to import gasoline.”The president highlighted the startup of a gas condensate refinery and a gasoline production plant in Bandar Abbas in southern Iran. “Since the 11th administration has taken office to present, Iran’s gasoline production has doubled, which indicates petroleum industrialists’ efforts. Iran’s gasoline production has increased from 52 ml/d to 101 ml/d,” he added.Rouhani described US sanctions against the Iranian nation as a “crime against humanity” and said: “The sanctions are more of psychological warfare rather than economic war.”

SP Output Set to RiseMinister Zangeneh said the refineries of SP13, SP22-24 had become operational. “I hope that the three offshore phases of SP22, SP23-24, SP13 and SP14 would become operational” later this year, he added.The minister said one offshore section of SP14, i.e. 1 bcf, is under operation, adding that Iran’s gas production from South Pars (except for SP11) would reach 750 mcm/d by the middle of the current calendar year.Zangeneh said Iran’s annual gas production averaged 622 mcm/d in the calendar year to March 2013, which reached 841 mcm/d in the year to March 2019.“Given demand for gas, Iran’s production rate would reach 880 mcm/d in the current calendar year, and 950 mcm/d next calendar year,” he added. “It means that Iran’s gas production would soon reach 1 bcm/d.”Zangeneh said Iran’s gas production from South Pars has soared from 280 mcm/d in 2013, to 610 mcm/d now. He added that South Pars had a production capacity of 660 mcm/d.He said the first agreement for the development of South Pars was signed in 1997 and five phases became operational by August 2005. From 2005 to 2013, five incomplete phases – SP6, SP7, SP8, SP9 and SP10 – were completed.Zangeneh said SP12, which was equivalent to three standard phases, came online under the first round of the administration of President Rouhani, while SP15 and SP16 were commissioned in March 2016. He added that six conventional phases became operational in

April 2017 and the refineries of four other phases have just been inaugurated. Zangeneh said, in total the refineries of 15 phases have so far been inaugurated. The minister said SP14, which is equivalent to two standard phases, would become operational by 2020.Less Liquid Fuel Supply to Power PlantsZangeneh touched on the role of South Pars development in the reduction of liquid fuel supply to power plants.He said: “The power plants’ share of liquid fuel was down from 43% in 2013 to 10% in 2018. Due to sustainable gas production, even with increased gas consumption since 2017 gas supply to industries has not been restricted.”“Nowhere in Iran have we received any report of pressure fall-off. In addition to supplying gas to power plants, industries and petrochemicals firms, we have set a fresh record in exports,” the minister said.Zangeneh also referred to the continued reduction of gas supply to flares in the SP1-SP5 refineries and said new equipment for gas flare gathering was purchased after Iran struck the 2015 nuclear deal with six world powers, which lifted sanctions on Tehran.“That has allowed us to launch SRU systems for desulfurization and our major concern about environmental pollution is allayed,” he said.Zangeneh said owing to South Pars development, Iran extended gas pipes by 3,000 kilometers. “With the help of

hese pipelines and stations, we have managed to provide a stable and solid network for the country,” he added.The minister said: “Chief among significant events is establishment of downstream industrial plants through relying on South Pars. The most important of them are petrochemical plants.”18 Petchem Projects Come OnlineThe petroleum minister touched on the implementation of petrochemical projects and said: “Fifteen petrochemical projects with an investment of $5.6 billion and products valued at $5.2 billion came on-stream from 2013 to 2018 and 18 more petrochemical projects would become operational before the end of the current administration’s term.”Zangeneh named the inaugurated petrochemical projects as Ilam, Lorestan, Urmia, Mahabad, Shiraz, Takht Jamshid Pars, Karoun, Kavian, Morvarid, Entekhab, Kurdestan, Pardis (phase 3 of ammonia/urea), Marjan (methanol) and Damavand (utilities).The minister said that the Kaveh methanol plant, Phase 1 of the Bushehr Petrochemical Plant and Phase 2 of the Ilam Petrochemical Plant would come online this calendar year. Furthermore, the completion of Miandoab petrochemical plant, Middle East methanol alchemy, Lordegan chemical fertilizer, Masjid Soleyman, Bid Boland gas refinery, Ibn Sina Petrochemical Plant, Arta Energy and Gachsaran under the second administration of President Rouhani would bring about a major development in Iran’s petrochemical sector.Zangeneh said Iran’s petrochemical output stood at 31 million tonnes a year, which would grow to 52 million tonnes through commissioning new projects.“In this way we will witness a high rise in petrochemical production,” he said.Annual Petchem Output Target MetZangeneh said Iran’s petrochemical production capacity was 56 million tonnes in 2013, which reached 64 million tonnes in 2017 and would go up to 94 million tonnes in 2021.He added that Iran’s petrochemical production was valued at $18 billion in 2013, which rose to $25 billion in 2017 and would soar past $36 billion by 2021.The minister said ethane production would have overtaken ethane consumption by 2024. “We have to make arrangements for ethane exports. Of course, in the coming years ethane cracker units will come online to produce ethylene for domestic consumption,” he said.Gasoline Output Doubles Zangeneh went on to underscore a two-fold increase in gasoline production under the Rouhani administration. “In 2012, gasoline production stood at 52 ml/d, which has now reached 101 ml/d. We will simply reach 105 ml/d, which is indicative of two-fold increase in the country’s gasoline production,” he said.Zangeneh said Iran, which did not supply any Euro-grade gasoline in 2012, supplied 76 ml/d of Euro-grade gasoline in the last calendar year to March 2018.“Gasoil production in Iran has increased 12%, coming from 94 ml/d in 2012 to 105 ml/d in 2018. Furthermore, Euro-grade gasoil production has Zangeneh said Iran’spetrochemical productioncapacity was 56 million tonnesin 2013, which reached 64million tonnes in 2017 andwould go up to 94 milliontonnes in 2021Fifteen petrochemical projects with an investment of $5.6 billion and products valued at $5.2 billion came on-stream from 2013 to 2018 and 18 more petrochemical projects would become operational before the end of the current administration’s term

increased from 6 ml/d in 2012 to 44 ml/d now,” he added.Zangeneh said the Joint Comprehensive Plan of Action (JCPOA), provided golden chances for Iran to carry out major projects.The minister also said that an export terminal would be built in Jask Port, adding: “We hope that this export terminal would be operational by March 2021 so that Iran’s oil would be exported for the first time via Makran.”Enhanced Recovery from Joint FieldsIran’s petroleum minister also referred to a five-fold increase in production from joint fields in the West Karoun area. He added that production from these fields would increase from 70,000 b/d in 2013 to 355,000 b/d in 2018.“Today, oil is on the frontline of war against the enemy’s sanctions and we cannot reveal our methods and plans, facts and figures. That exerts pressure on my colleagues and me, but we have no option but to stand and go ahead. We go ahead with our work in different sectors without any fuss,” said Zangeneh.US Disturbing Oil MarketOne day before the inauguration of SP13 and SP22-24 projects, Zangeneh held a press conference to mark the anniversary of nationalization of Iran’s petroleum industry.Asked about the possibility of US extending waivers to buyers of Iran’s oil, he said: “I don’t know whether or not the waivers for Iran’s oil exports would be extended, but we do our own job.”“Every day the Americans say something new. Of course I recommend them to talk less. The Americans have disturbed the oil market for one year now. They regularly change their mind. But we have proven that we are peaceful and peace-loving people. They flex muscles and that would backfire on them,” the minister said. He dismissed speculation that in case of no sanctions waiver, Iran would no longer be able to export oil.JMMC IneffectiveZangeneh also said OPEC/non-OPEC Joint Ministerial Monitoring Committee (JMMC) was not as effective as it claims to be. “OPEC has the final say and nobody else is authorized to speak for OPEC,” said the minister. Zangeneh said: “OPEC is a collective entity and it implements whatever ministers agree upon in their meetings.” He, however, said that every single OPEC member was free to respond individually to any tweet from US President Donald Trump about the oil market. Gas Exports UnaffectedZangeneh said the US’s decision to reimpose sanctions on Iran after its withdrawal from the JCPOA had not affected the country’s gas exports. He said that Iran had offered to pump gas to Syria via Iraq. “The Iraqis have always been on our side, but I don’t know to what extent the talks have made progress. I did not accompany Mr. Rouhani during his recent visit to Iraq.”Asked about Iran’s gas exports to Oman, he said international companies refused to bid for the pipeline project due to sanctions and the Omanis were not ready either. “The project’s value is not too much and we can provide finance, but we do not have the technology to lay pipes in deep waters,” said the minister.Iran-Pakistan Gas Deal ValidZangeneh said Iran had fully complied with its obligations under its gas pipeline agreement with Pakistan. But, he said, Pakistan has taken no action for the construction of the gas pipeline. “They raise politically-motivated claims, saying they are under pressure from Saudi Arabia, the United Arab Emirates and the US. But in any case, the agreement for this pipeline is valid, whose terms have to be respected,” he said. He added: “We regularly follow up on the issue from political and diplomatic channels, but we have yet to pursue the issue legally.” Zangeneh said Pakistan could not find any case which would cost lower than Iran’s. “We are ready to supply gas to them either directly or indirectly,” he added.SP11 Talks Under WayZangeneh said talks were still under way with China’s oil company CNPC to replace France’s giant Total in the SP11 development project. “Negotiations with the Chinese are under way and a high-ranking Chinese delegation is expected to visit Iran,” he added. Total pulled out of the nearly $5 billion project for fear of US penalties after Washington reimposed oil sanctions on Iran.Zangeneh said a foreign company involved in the development of the South Pars Oil Layer had also left Iran due to the US sanctions. “The oil layer development requires sophisticated technology and we need to seek assistance from experienced companies,” he added. The minister said Iranians would not be the only people to face hardships due to sanctions “because these hardships will affect the world, too.

Plan to Enhance Offshore Fields Output

National Iranian Oil Company (NIOC) is planning to implement 33 oil and gas projects to enhance recovery from oil fields across the country, including four offshore projects in the Siri, Forouzan, Resalat and Reshadat fields.Hamid Bovard, CEO of the Iran Offshore Oil Company (IOOC), has said three packages of projects for oil recovery preservation and enhancement have been decided. He said the four offshore development projects, worth $800 million, would be finalized this year.The entire 33 projects are expected to be implemented over a three-year period for more than $6 billion. The major provinces involved in these projects are Khuzestan, Bushehr, Fars, Hormuzgan, Kermanshah, Ilam and Kohguiluyeh Boyer Ahmad – all located in south, southwest and west of Iran.Once operational, these projects would contribute about 300,000 b/d to Iran’s national output.Last February, nine contracts were signed between NIOC affiliates and Iranian contractors. In October last year, IOOC and Petroiran Development Company (PEDCO) reached agreement on enhanced recovery from the Sivand and Siri oil fields. Under the deal, over a 20-year period, oil production from these fields would grow by about 16,000 b/d. Bovard said: “PEDCO will have six months to supply equipment and make required arrangements. The deadline has not expired yet, but the project has had desirable progress. The projects are predicted to become operational in the second half of the current calendar year.”He said negotiations were under way for the development of the Reshadat oil field, adding: “A licensing round has also been held for the Resalat field, whose successful bidder will be named soon.”Output Stability Bovard said despite economic bottlenecks and international pressure exerted on the petroleum industry, IOOC met its production targets in the last calendar year to March. “In addition to stable production, we did a good job in water and gas injection,” he added. “There have been some faults and we are not happy with the results of all projects, but we have fared well with regard to money stock and in light of circumstances,” he said. Bovard also referred to legally-rooted delays in the completion of the Kharg NGL project, saying: “Given the activities of contractors and equipment of yards, the current calendar year will be a busy year.”The Kharg NGL project is being implemented for the first time under the build-operate-transfer (BOT) model by the private sector. The investor in this project is Iran’s offshore industrial company SAFF.He said after the operation of the NGL project, the gas flare of the Abuzar oil platform would be turned off once the project has been implemented and the associated gas would be used at the Kharg petrochemical and oil facilities. Furthermore, the gas flares of the Hendijan, Bahregansar, Resalat, Balal, Soroush and Norouz would be turned off, too.The objective sought in the implementation of Kharg NGL project has been to avoid the flaring of 300 mcf/d of associated gas. The startup of the NGL plant would supply such products as ethane, propane, pentane, butane and natural gas. That would lead to the creation of a value chain of downstream projects in Kharg Island.Studies Updated Bovard touched on an NIOC plan to update reservoirs data, saying: “Within the framework of this plan, the reservoir data of the Doroud, Abuzar, Bahregansar, Hendijan, Forouzan, Hengam and Norouz would be updated by contractors.” He said Petroleum Minister Bijan Zangeneh had instructed the renovation of oil facilities, adding: “In this regard, CEO of NIOC has given a one-month deadline for the submission of reports on renovations. We hope that by managing costs and executing approaches we would witness the renovation of high-risk facilities of the company.”Recoverable Reserves Extracted 82.8%IOOC administers 30 oil fields and 12 gas fields. Among them 18 oil fields and 2 gas fields have so far been developed. Zarir Goudarzi, IOOC technical director, said 82.8% of recoverable oil reserves in Iran’s offshore jointly owned oil fields has been already extracted at a recovery rate of 23.7%. “This amount of recovery shows maximum efficient recovery from joint offshore fields in different periods,” he said. Goudarzi said 14% of recoverable reserves in IOOC-owned gas fields had been also extracted.He added that 721 oil and gas wells had been drilled in IOOC-run oil and gas fields. About half of wells are operational and more than 25% of IOOC oil production has been materialized through using downhole pumps. He said IOCC had moved towards using Iranian drilling rigs and vessels in order to reduce drilling costs. Goudarzi said IOOC had cut the level of its drilling services by two-thirds over a five-year period to 2018.

Iran, Iraq Agree on Border Oil Fields Development

Iran and Iraq have reached understanding on the development of two oil fields they share along their borders. “Negotiations pertaining to the development of the jointly owned Naftshahr and Khorramshahr oil fields are done and we have now reached a point where we can set up the framework for an official agreement for their development together,” Iranian Petroleum Minister Bijan Zangeneh said. He made the remarks while along with his Iraqi counterpart Thamer Al Ghadban was visiting the Energy Intensive Engineering and Design Company (EIED), affiliated with the Oil Industries Engineering and Construction Company (OIEC), in Tehran   There is great potential for the development of Iran-Iraq cooperation in the oil, gas, refining and petrochemical sectors, and Iran is ready to share its potentialities with the Iraqi petroleum industry,” said Zangeneh. He said OIEC and an Iraqi mirror company would explore opportunities for cooperation. He added that Iran was ready to help Iraq develop its gas and petrochemical sectors.Zangeneh also said that Iraq owed Iran $1 billion in gas debts. Iran-Iraq CooperationIran’s deputy minister of petroleum for international affairs and commerce, Amir-Hossein Zamani-Nia, said Iran and Iraq had held negotiations for cooperation in the oil, gas, refining and petrochemical sectors. He said Minister Zangeneh and President Hassan Rouhani had discussed cooperation areas during their separate visits to Iraq. “Pursuant to these negotiations, Iran and Iraq signed a memorandum for cooperation. Based on this memorandum, Iran would be providing technical and engineering services to Iraq to rebuild its old refineries and establish a gas supply network. The two countries would also develop joint fields,” he said. Zamani-Nia said political developments had provided the best time for the development of cooperation between the Iranian and Iraqi oil sectors. “Given Iran’s petroleum engineering technical potentialities it is possible for our country to export technical and engineering services to Iraq. Furthermore, due to Iran’s unique standing in the gas supply network development, the document lays emphasis on the utilization of Iran’s experiences and potentialities for setting up a gas distribution network in Iraq,” he added. He said a long-awaited oil pipeline linking Iran’s Abadan with Iraq’s Basra would become operational soon.Under the memorandum, Iraqi students would come to Iran to study petroleum engineering at the University of Tehran. Zamani-Nia was asked about the possibility of non-extension of US waivers to buyers of Iran’s oil. He said: “I don’t comment now, but there is almost consensus that the oil market is not stable and stagnant; rather, it is very tense and gasoline prices at US gas stations would determine whether or not such waivers would be extended.”EIED ‘Remarkable’The Iraqi oil minister heaped praise on EIED, saying: “I realized that this company is very qualified. They are competent in the engineering and design of oil, gas and petrochemical projects.” “I was impressed to get to know about EIED’s activities in the oil sector. This company’s experts remain as strong as they were before the [US] sanctions [were re-imposed]. They are doing their utmost in the implementation of projects in the oil fields, designing as well as operation. That’s remarkable,” he said.Al Ghadban said he had travelled to Tehran to explore grounds for cooperation with Tehran. “It is not the first time we are working together and exchanging views and thoughts.” “We have an institute similar to EIED. We will soon send a delegation to Iran to sit together [with Iranians] and exchange ideas and thoughts and examine ways and methods of cooperation,” he said. “That would be in designing, construction and even operation, either individually or jointly.” After a meeting with visiting Iraqi Prime Minister Adel Abdul Mahdi, President Rouhani called for increased volume of trade between the two countries. Rouhani called for Iran and Iraq to expand their gas, electricity and oil dealings and boost bilateral trade to $20 billion, despite difficulties caused by US sanctions against Tehran. “We hope that our plans to expand trade volume to $20 billion will be realized within the next few months or years,” Rouhani said. The current level of Iran-Iraq trade stands at about $12 billion. The energy industries in the two countries have close links and Iraq relies heavily on Iranian gas to feed its power stations. Iraq imports roughly 1.5 billion standard cubic feet of gas per day from Iran via pipelines in the south and east of the country. During the trip to Iraq last month by Rouhani and Zangeneh, Iran had agreed to help Iraq with technical and engineering services in the oil sector. US President Donald Trump re-imposed sanctions on Iran’s energy exports in November, but simultaneously granted waivers to several buyers to meet consumer energy needs. In March the United States granted Iraq a 90-day waiver exempting it from sanctions on buying energy from Iran.Iranian Energy Minister Reza Ardakanian said Iraq has cleared 90 percent of its electricity dues to Iran.“During the past 15 years, Iran exported $6 billion of electricity to Iraq and the country has paid 90 percent of its arrears to us in this period,” Ardakanian said at Iran-Iraq Business Forum held in Tehran.“We hope that we can continue electricity exports to Iraq in 2019-2021, as it is pre-planned in the joint signed agreement,” he added.

Three Gas Fields to Be Developed

The three gas fields of Kish, Balal and Farzad are expected to undergo development in the current calendar year, a top official has said.Mohammad Meshkinfam, CEO of Pars Oil and Gas Company (POGC), said POGC had drilled and completed 41 offshore wells in the last calendar year.He also touched on the inauguration of eight trains of gas sweetening in the refining sector and the inauguration of phases 13 and phases 22-24 of the giant offshore South Pars gas field. “If the operation of two offshore platforms in SP14 is taken into consideration, we can say that 6 offshore topdrives became operational in the last calendar year, which was a record for the South Pars projects,” he said.Meshkinfam added that development of the three aforementioned fields had been recently assigned to POGC.He said the new assignments would force POGC to work at a higher pace

West Karoun Power Plant to Come Online

The CEO of Petroleum Engineering and Development Company (PEDEC) has announced the upcoming commissioning of the first phase of the power plant of West Karoun in the first quarter of the current calendar year. “The final stages in Phase 1 of this power plant are under way. After its commissioning, the Petroleum Ministry would be for the first time generating electricity in West Karoun’s fields to serve development projects and local residents,” said Touraj Dehqani. He said development in West Karoun would pick up speed in the current calendar year, particularly in the South Azadegan oil field, by Iranian companies in order to “minimize the impact of sanctions and external problems”. “Efforts were under way in the previous years for the presence of foreign companies under new deals, and good results were achieved, but due to bottlenecks and sanctions they were thwarted,” he said, adding: “Nonetheless, the issue is being pursued by the Ministry of Petroleum in order to persuade foreign companies to contribute to West Karoun development.”

2 Petchem Projects to Come Online in H1

A senior official of National Petrochemical Company said two new petrochemical projects would come online in the first half of the current calendar year.Ali-Mohammad Bosaqzadeh said three sections of Phase 1 of the Bushehr petrochemical plant and some new sections of the Damavand Petrochemical Plant would become operational in the first half of the current calendar year.He said: “The petrochemical production capacity will increase after the commissioning of these two projects.”Bosaqzadeh said: “The sweetening and ethane recover units of the Bushehr plant have already started their trial-run operation and the methanol unit is in the pre- commissioning phase.”He added that completion of Phase 1 of the Damavand plant except for industrial waste treatment of all units would come on-stream.He said that Iranian manufacturers should take into account the transfer of technical knowhow and application of modern technologies

Iran Eyes LNG Production, Exports

The CEO of National Iranian Gas Company (NIGC) has announced the company’s plans to produce and export liquefied natural gas (LNG) among other objectives. Hassan Montazer Torbati also said that NIGC intended to boost Iran’s presence in regional markets, diversify exports, stabilize production, pump gas into major markets and use suitable opportunities for global gas trading.He touched on Iran’s 33tcm gas reserves, saying NIGC had supplied gas to more than 1,141 cities and 28,000 villages. “There are about 45,000 villages in Iran, which could receive gas. Of them, more than 27,000 have been connected to gas and other villages will be linked to the gas network in the future,” he added.Montazer Torbati said natural gas made up a 75% share in Iran’s fuel mix. “In recent years, middle distillate and liquid fuel consumption has been falling. Liquid fuel consumption at power plants fell from 27 bcm/d in the calendar year to March 2014 to 8 bcm four years later.”

US Pressure on Iran Could Render Oil Market more Fragile: Zangeneh

Iranian Minister of Petroleum Bijan Zangeneh said the current crude oil market was in a fragile state, adding, “If the US decided to exert more pressure on Iran, the oil market would become unpredictably more fragile.”Speaking in a live radio interview, Mr. Zangeneh reacted to rumors that oil facilities had been built on land in order to reduce costs leading to drying up of wetlands in oil-rich areas, saying that such rumors were spread by enemies of the Iranian nation. “There are films from oil facilities in wetlands that are swarmed with water,” he said. He emphasized that there were no prohibitions on the issue of Hoor al-Azim Wetland from the Iranian Ministry of Petroleum, adding, “Our policies have always been concerned with the ecosystem of the wetland as a living system and, for that matter, we have incurred a lot of expenses.” Highlighting the latest US President Donald   Trump’ threats on Iran, Mr. Zangeneh said, “We continue to work, but what’s important is that the oil market is in a fragile state, and that there is not so much supply for the demand.” “Such statements are

mostly propaganda-oriented rather than calming the market. But that will not be the case. The price of oil is rising day by day, reflecting growing concerns in the market,” he said. The official argued that “Mr. Trump should choose whether to add more pressure on Iran or keep fuel prices low on gas stations in the US.” “Venezuela is now in difficulty; Russia has been banned; Libya is in a state of unrest and the US has lost a part of its oil output. These indicate that the state of production, supply and demand are fragile. If they want to add pressure on Iran, this fragility will be unpredictably exacerbated.”Zanganeh, in response to the a question that if Sudan’s current state as a pivot supported by Saudi Arabia was to end, and that of pressures continued on Venezuela, then would the United States succeed in furthering pressure on Iran, said such issues concerned northern Sudan while the country produced most of its oil in its southern regions, adding continuation of the status quo in Venezuela could only increase pressure on the US

Oil Terminals Lab Offering Technical Services

Full crude assay laboratories in Iran’s oil terminals are offering services at the national, regional and international levels, CEO of Iran Oil Terminals Company Abbas Assadrouz said. He said the chemical lab of IOTC had been recognized by international bodies as competent in full crude assay. Assadrouz said that employment of specialized manpower and application of the latest instructions had upgraded lab services in the petroleum industry. He said that IOTC was one of the largest crude oil quality assessment centers in the world, which could conduct tests on crude oil and petroleum products in compliance with the latest international standards. He said that crude oil and gas condensate exports had to comply with the latest standards in the world. He added that verification of operations would boost oil exports. Crude oil assay consists of a compilation of data on properties and composition of crude oils. The assay provides critical information on the suitability of crude oil for a particular refinery and estimating the desired product yields and quality. It also indicates how extensively a given crude oil should be treated in a refinery to produce fuels that are in compliance with environmental regulations. COAs have essential role in the technical and economic evaluation of crude oil. Data from COA is being used during defining process parameters and refinery operation optimization. COA contains a detailed characterization of crude oil and crude oil fractions obtained based on the results of laboratory analysis and indicates the quality of prospective products. Crude oils are not identical; each crude oil has unique physical and chemical properties and quality differences. Over time, the physical-chemical characteristics of crude oil change, so it is necessary to control the quality of crude oil at certain time intervals.  

Crude Oil, Products Transfer Unaffected by Floods

The CEO of Iranian Oil Pipelines and Telecommunication Company (IOPTC) has said that the flow of crude oil and refined petroleum products in Iran had remained unaffected despite heavy downpours in Iran. Abbas-Ali Jafari-Nasab, however said that in some flood-stricken provinces like those in northern Iran, as well as Lorestan and Khuzestan provinces, the coating of some pipes had been washed away. He said that Iranian technicians were making all pipes secure to prevent any accident. Jafari-Nasab said the Ahvaz-Rey pipeline carrying petroleum products had experienced rupture, adding that some sections of the pipeline had been replaced

    OPEC+ Deal Extension Easy

Iran’s Petroleum Minister Bijan Zangeneh said it was easy for OPEC and non-OPEC participating countries in the DoC to extend their production reduction deal.“Extension of the oil supply reduction agreement by members of the Organization of the Petroleum Exporting Countries and non-OPEC producers would be easy. This agreement has far produced good results,” he said after meeting Russia’s Minister of Energy Alexander Novak.“As far as I know, extending the DoC is not difficult,” he said.Zangeneh said he and Novak had discussed better cooperation between Iran and Russia as two major oil producers. He said he had discussed US sanctions imposed on major oil producers. “We said that three major oil producers – Iran, Russia and Venezuela – are subject to unlawful US sanctions and therefore the oil market has been destabilized in the short and mid-term. That has caused worries among oil consumers.”Zangeneh said he had traveled to Russia to exchange views with his Russian counterpart on oil market conditions. “The global crude oil markets are shaky in terms of supply and demand. Therefore, oil producers must watch out for possible problems in the market conditions, particularly against the backdrop of US

Nouri Petchem Upgrades Paraxylene Unit

CEO of Nouri Petrochemical Company Taqi Sanei has said that the absorption towers of the paraxylene unit of the company have been upgraded. He said the project had cost IRR 9,000 billion, adding: “The paraxylene production unit is one of the important and key units contributing to the profitability of aromatic petrochemical plants. Currently, just a French and an American company are producing paraxylene in the world.” He described paraxylene production as one of the most sophisticated chemical processes, saying: “For this reason, paraxylene costs much higher than other isomers like ortho-xylene.”The Nouri plant is currently producing more than 750,000 tonnes a year of paraxylene, while the Isfahan Petrochemical Plant is producing 44,000 tonnes a year of this product.Sanei said paraxylene production had declined from 2,000 tonnes a day to 12,000 tonnes a day due to the expiration of molecular sieves. He added that European technicians installed new sieves. Paraxylene, also called p-xylene, is a chemical which is essential to the process of manufacturing PET plastic bottles and polyester fiber. Paraxylene is widely used as a feedstock (or “building block”) to manufacture other industrial chemicals, notably terephthalic acid (TPA), purified terephthalic acid (PTA) and dimethyl-terephthalate (DMT). TPA, PTA and DMT are used to manufacture polyethylene terephthalate (PET) polyesters, a kind of plastic. Bottles made from PET plastic are widely used as containers for water, sodas, and other beverages because PET is lightweight, shatter-resistant and strong. In addition, PET helps keep the fizz in carbonated beverages because it has strong carbon dioxide barrier properties.Other PET uses include: containers for toiletries, cosmetics and other consumer products; fabrics for curtains, upholstery, and clothing; films for x-rays, magnetic tapes, photographic film and electrical insulation; and packaging for boil-in bags, processed meats, shrink films and blister packs

Andimeshk Ethylene Oxide Construction Starts

The construction of an ethylene oxide plant has started in the city of Andimeshk in the oil-rich province of Khuzestan in southwestern Iran, during a ceremony attended by Petroleum Minister Bijan Zangeneh. The project, whose capacity is estimated at 300,000 tonnes, would take in about 90,000 tonnes of ethylene fed into the West Ethylene Pipeline (WEP

Zangeneh has said that Iran’s petrochemical industry was bracing for a major change, adding that petrochemical feedstock would be more than needed in the next calendar year. About $388 million is to be invested in the Andimeshk project. The Persian Gulf Petrochemical Industries Company, known as Persian Gulf Holding, is to provide the financing. In addition to ethylene oxide and downstream industry products, monoethylene glycol, ethoxylate, glycol ether, ethanol amine and MDEA would be supplied by the Andimeshk plant. Each of these products would be able to complete a chain of petrochemical products that would be used in paint, textile, cosmetics, hygiene, pesticides, cement industry, gas sweetening and detergents among other sectors.45mt Products Hit MarketAddressing the event to start construction operations in Andimeshk, Zangeneh said Iran’s petrochemical production was valued at $20 billion for 30 million tonnes a year. He added that Iran’s petrochemical output would reach 45 mt/y within two years, as new projects would come online. “I hope that construction of the Andimeshk petrochemical project would end within three years. This new project is a new line for ethylene plants and could turn into an industrial cluster in the region and then hundreds of downstream petrochemical plants would be established to create jobs,” said the minister. Zangeneh said Iran’s petroleum industry was at the receiving end of US sanctions, adding: “They want to prevent us from selling oil and transferring its money. They have so far failed to do so.” He said Iran had already experienced tough time during the early days of the 1979 Islamic Revolution and the 1980-1988 imposed war. “But the pressure that the enemy has exerted on Iran has been unprecedented. Today we do not have deaths, injuries and bombing, but the enemy's pressure is tougher. However, they have achieved nothing and they will not,” he added.Zangeneh said $6.5 billion would be invested in Iran’s petroleum industry. “The items I said should not be purchased from abroad. Furthermore, some resources would be spent on the development of oil-rich areas,” he added. Zangeneh touched on the issue of a 100 mcm/d increase in Iran’s production capacity, saying: “Gas supply projects are in their final stages. We didn’t have any problems with regard to providing the required gas for winter. There was no pressure fall-off nor cut in the gas supply.” “In the midst of sanctions, our petrochemicals production increased. We are doing our best to finish all projects,” he added.Zangeneh said oil production from West Karoun had increased from 70,000 b/d in 2013 to 300,000 b/d now, which would soon reach 350,000 b/d. He added that crude oil recovery from the Azar field would double to 60,000 b/d by March 2020. Referring to Petroleum Ministry plans for coping with sanctions, the minister said: “We are going ahead under tough conditions, but we will not disclose our plans for countering the sanctions.” “Along with my colleagues, I will be exposed to pressure so that the Iranian nation would remain glorious. We will continue development activities in the petroleum industry. Investors are coming, but I don’t name them to head off the enemy exploitation,” said Zangeneh.Downstream Petchem ProfitabilityJafar Rabiei, CEO of Persian Gulf Holding, said the petrochemical industry has so far focused on midstream, saying it was now important to take steps towards the downstream sector.“The Andimeshk ethylene oxide project is a downstream ethylene project, which would be more profitable than polyethylene, and has a complete downstream value chain,” he said. Rabiei said the BuAli, Nouri and Bandar Imam petrochemical plants would list on the stock market in the next calendar year. “The Persian Gulf Holding has five companies listed on the stock market. We have a 12% share in the stock market now,” he said.Rabiei said: “Currently, $8.5 billion worth of petrochemical development projects are under way by the Persian Gulf Holding. The three main projects – the Bid Boland gas refinery, Lordegan urea/ammonia and Ilam Olefin totally valued at $4 billion – would be inaugurated in” the next calendar year.Fereidoun Hassanvand, head of the Iranian parliament’s Energy Committee, said the start of construction operations for the Andimeshk project was indicative of the futility of US sanctions. “Today we are selling our oil and making investment, as well,” he said. The Andimeshk plant is being constructed in an area which would be very close to Iran Gas Trunkline 6 (IGAT6) to receive gas feedstock and near "Karkheh Dam" to have access to water. The Khuzestan Power Company and the Fajr Petrochemical Plant are to supply the required electricity to the new project.Economic and technical feasibility studies have been conducted for the petrochemical project. Under the present circumstances, the successful bidder for fencing operations has been identified. The project is owned by the Persian Gulf Holding, while it would be developed by the Petrochemical Industries Development Management Company (PIDMCO).

Iran Eyes Downstream Petchem Development

ran has seen a 21-fold increase in its petrochemical production capacity, 9-fold increase in the number of petrochemical plants, 33.5-fold increase in petrochemical production and 37-fold increase in petrochemical exports over the past four decades. However, due to non-development of downstream industrial chain, it has yet a long away to go to reach a higher profitability. The value of development in the downstream industries may be clarified with a simple example. Job creation in downstream industries is possible with lower costs and in bigger numbers. In the upstream sector, $94,000 should be invested for creating each job, while in the mid-stream industries; about $780,000 in investment is needed. The figure is down to $21,000 in the downstream sector. For each upstream sector job, 500 downstream jobs may be created. The rate of return on investment in the upstream sector is 10-15% versus 35% in the upstream sector.One million tonne of raw petrochemicals is valued at $300 million. But when the same raw materials are converted into products, Iran would get $670 million in revenue. That is key to economic development via downstream petrochemical industries. Petrochemicals exports have become instrumental in Iran’s non-oil economy. Based on official data, the petrochemical sector is the second largest revenue generator after crude oil in Iran. Petrochemicals make up a 33% share in Iran’s non-oil exports. Measures are under way to raise this percentage to 35. Sustainable development means creating value-added  nd the petrochemical sector would serve Iran’s economy the most. The petrochemical industry is able to play an effective role in upgrading Iran’s economy, creating jobs and generating revenue by processing and supplying valuable products.Iran’s Petroleum Ministry plans to invest $75 billion in the petrochemical sector over eight years. Meantime, it hopes to bring the South Pars gas field to full production within three years. These two developments promise fast growth in the petrochemical sector and generally in Iran in coming years. If sufficient feedstock is available, Iran could produce at least 60 million tonnes a day of products. Meantime, completion of more than 60 petrochemical projects launched under the 3rd, 4th and 5th national development plans could help double Iran’s petrochemical output capacity.Stopping Raw Material SalesThe petrochemical industry development is one of the most important pillars of dynamic economy in Iran. With the infrastructure available in Iran, the petrochemical industry can grow into one of the most profitable industries in Iran. In order to reach the objectives envisaged in the development plans, in addition to new investment and completion of incomplete projects selling raw materials should stop and the petrochemical products mix should be diversified. Therefore, efforts must be made for the construction and completion of upstream projects and increased output, while downstream petrochemical industries would be the best alternative to crude oil and upstream petrochemical products exports. Due to the high profitability of downstream industries, their development has to be taken into account more than ever. Development of downstream petrochemical industry has been taken into consideration by authorities over the past decade because a balanced development of the upstream and downstream petrochemical sectors would prevent selling raw materials and create a high value-added. Amid numerous challenges especially during years of sanctions, Iran’s petrochemical industry has been seeking balanced development and completion of its value chain. Now in the post-sanctions era, this industry needs national will and determination.Iran’s petrochemical industry is now on the way of growth and development and therefore needs to complete its value chain. Therefore, concurrently with the development of its upstream sector, the downstream sector of this valuable industry has to be taken into consideration as a national strategy. Just like in the upstream sector, opportunities are availabl

n the downstream sector for development. It is possible to use state-of-the-art technologies and new foreign investment in this sector so that the value chain completion would pick up speed. Energy experts believe that investment in downstream industries would be certain and profitable; however, weaknesses must be removed and new plans must be arranged.Twofold Growth in RevenueExperts say if Iran’s petrochemical exports are set at about $20 billion annually, completion of the value chain in these products could double Iran’s hard currency income. Of course, financial estimates in the export sector should not be taken into account alone. Other advantages include transfer of knowhow and technology, which development projects desperately need. Export-oriented production has to be taken into consideration in negotiations with foreign companies. Everyone must move in the direction that new investments would help explore new markets. Iran’s petrochemical industry development is being formulated. Besides implementation of projects, feedstock supply and exports, special attention is paid to diversifying the value chain and supplying products which Iran has had to import.In the previous periods, diversification of production and completion of value chain had been focused upon in the petrochemical sector. But due to systematic complications, no favorable result has been achieved so far. On one side, no precise system has been developed to distribute materials needed for the development and completion of the value chain of the petrochemical industry, while on the other, inclination for petrochemical exports due to financial incentives has pushed the issue of exports to bold relief at petrochemical companies. This issue takes up added significance amid privatization of the petrochemical sector in Iran.Development and completion of the value chain in the petrochemical industry is significant on the grounds that it would activate job creation which has so far been ignored. The general belief, albeit wrong, has been that job creation would require building large-scale petrochemical plants. Since building a petrochemical plant would not create too many jobs despite high spending, petrochemical-based job creation is said to be costly. But when it comes to the development of downstream industries, the petrochemical sector becomes meaningful within the framework of a value chain. Ignorance of systematic approach has led most petrochemical plants to ignore their downstream needs and fix their eyes on export markets. That is why in many cases, the industries lying at the end of the value chain would prefer to use imported materials and polymers. By completing the value chain, it would be possible to activate the production sector and that is one solution to reducing industrial stagnation and bringing about economic prosperity.Ethane Output to Hit 10mt/yIran’s Petroleum Minister Bijan Zangeneh said Iran’s ethane production would reach 10 million tonnes a year this year. The extra ethane would be used to feed petrochemical plants. To that end, olefin units need to be constructed at a larger pace. The first phase of Bushehr Petrochem Plant’s olefin project, Ilam olefin, Sabalan methanol, Lordegan chemical fertilizer, Miandoab Petchem Plant, Sadaf Assaluyeh ASPR, Kaveh Methanol and Bid Boland gas refinery would add a total 12 million tonnes to Iran’s petrochemical production capacity.In order to reach a higher growth rate and achieve a bigger value-added in this sector, it would be necessary to take action for the development and completion of the value chain of petrochemical products and upstream products clusters including methanol and ethylene clusters and manufacturing of products of higher value-added. Certain measures have so far been adopted in this regard, but they are not sufficient in view of Iran’s oil and gas potentialities.Petchem Exports to 40 NationsA major objective sought in Iran’s Vision 2025 is for the country to become the top producer of petrochemicals in the region. Iran is already exporting petrochemicals to more than 40 nations. Thanks to a diplomatic charm offensive, it is possible to benefit from a 400-million-odd market in neighboring countries. These markets are of high significance in light of Iran’s geopolitical situation.Iran is instrumental in meeting the basic needs of other nations. By operating petrochemical development projects up to 2020 when Iran’s 6th five-year economic development plan ends, Iran’s share of petrochemical production in the Middle East would reach 41%. Under Iran’s 6th development plan, 55 million tonnes would be added to the production capacity.Iran is currently among the most secure countries in the region for domestic and foreign investment in the petrochemical sector. Incentives for investment in the petrochemical sector include infrastructure, rate of return on investment, high yield, growing demand in the region, knowledge-based industry, competitive circumstances for investment in the petrochemical sector, access to natural gas as feedstock and gas condensate, availability of skilled manpower, widespread communications infrastructure, sharing borders with 15 countries, establishment of special economic petrochemical zones, offering incentives to investors and the existence of a chain of petrochemical plants.Resilient economy policies could also provide legal support for development projects in the petrochemical industry. Making arrangements for using foreign financing and domestic banking facilities as well as the National Development Fund of Iran (NDFI) would help accelerate the petrochemical industry developmen

West Karoun Sustained Oil Flow Despite Heavy Flooding

ran has been hit with heavy downpours since the start of the current calendar year to March 2019, causing flash floods in at least 25 provinces. Khuzestan Province, which produces 80% of Iran’s oil and 16% of its gas, was also hit with floods. The flooding was such heavy that the rising waters penetrated into oil installations particularly in Hoor al-Azim which houses Iran’s West Karoun oil reserves.Iran’s Petroleum Minister Bijan Zangeneh has said that the recent floods are estimated to have caused IRR 10,000 billion in damage on the petroleum industry infrastructure. However, Reza Dehqan, director of development at National Iranian Oil Company (NIOC), has said that the floods had not caused any drop in the West Karoun oil output.Torrential rains engulfed many parts of Iran at the start of Persian New Year; however, Khuzestan Province and West Karoun, where most oil fields Iran shares with neighboring Iraq are located, had been grappling with rainfall since February.NIOC Crisis Management Committee has taken precautionary measures to head off a crisis which would halt oil production. Abdollah Tavvaf, deputy head of Petroleum Engineering and Development Company (PEDEC) for logistics, said: “Since oil installations lie in the Hoor al-Azim lagoon, we carried out feasibility studies for countering this crisis and minimizing the ensuing damage.”Ahvaz Oil Installations Need RenovationIranian oil installations are mostly decrepit. That has caused more sensitivity in a bid to prevent accidents and oil production halt in oil-rich areas when floods strike.During a visit to the Hoor al-Azim and oil-rich areas in southern Iran, Minister Zangeneh said: “Apart from any probable decline in the oil production, petroleum industry managers are required to prioritize environmental concerns as soon as they feel any danger to pipelines or oil installations, and make sure that no danger would be posed to the environment.”He touched on the decrepit status of oil installations, saying: “The useful life of oil installations varies between 20 and 25 years and we have been using them for more than 45 years now. The oil installations in Khuzestan need to be renovated, which would cost tens of billions of dollars.”He laid emphasis on the necessity of protecting the environment, saying: “We have emptied some pipes of oil, and keep water running into them so that if they are damaged the environment would not.”Crisis ManagementDuring our visit to some oil-rich regions in southern Iran, water levels had risen to high levels and in case of heavy rainfall; water is likely to penetrate into the installations. That is easily predictable. For example, a bridge crossing over the Karoun River comprises 20 pipes carrying a variety of fluids, as well as sour gas and condensate structures. Both sides of the bridge are manned by technicians who regularly monitor the situation to find a solution as soon as rainfalls change. Hamid-Reza Kayhanpour, the head of the Khuzestan branch of the Iran Pipelines and Telecommunications Company (IPTC), said as soon as floods strike, sporadic fractures are repaired. Despite destruction left by the floods, the flow of oil and the transmission of petroleum products are continuing in Khuzestan Province.Ahmad Mohammadi, CEO of National Iranian South Oil Company (NISOC) said the flow of oil crossing through the Karoun River was cut in order to spare the environment any harm. Meantime, he added, for the first time the transfer of oil was halted via the Karoun River in coordination with NIOC Directorate of Supervision on Production. “Some of the oil needed was supplied by other companies and naturally the output fell so that we could manage the crisis to prevent environmental damage,” Mohammadi said. Hoor al-Azim Not BlockedThe proximity of West Karou

oil installations to the Hoor al-Azim Lagoon caused some oil installations to be submerged in water due to heavy rain.While nearly 85% of the Hoor al-Azim Lagoon is full of water, there were rumors running around that the Petroleum Ministry had rerouted the flow of water into surrounding villages in order to safeguard oil installations in West Karoun. But aerial images and field visits prove that the lagoon is filled with water.Zangeneh dismissed rumors of the rerouting of water to villages, saying: “Most oil wells in West Karoun are under water. But we did not stop the flow of water into the Hoor al-Azim with the aim of keeping oil production running. We had never such intention and we believe that natural life and ecosystem should exist in the Hoor.” The minister said he had opposed to a plan to dry the Hoor in 2013. “I said it would be a crime against humanity. From the very beginning I was opposed to any manipulation of the Hoor al-Azim ecosystem and I announced that I will allocate no resources for that purpose and that the Hoor should be back to its normal condition.”“How are we working in the Persian Gulf and installing 100-meter-high jackets? If need be we can install platforms in the Hoor. We do by no means stop natural life and the free cycle of nature. It has never been our agenda,” said the minister. 50 Sluices in Hoor al-AzimHoor al-Azim is divided into five sections, covering a total of 300 oil wells. Touraj Dehqani, managing director of PEDEC, said about 50 sluices were cut in the Hoor to allow for the free flow of oil.During our visit to the lagoon, water level was rising. We stepped into a road which stretched from the South Azadegan to the North Yaran oil field. It means that the northernmost part of the South Azadegan field was under water.Majid Najarian, project manager for wellhead equipment and line popes at the South Azadegan project, said: “As you can see the water levels are so high that we need to take a boat.”He said four West Karoun oil projects were under water, adding that measures had been taken to spare the lagoon any harm in the face of rising waters.Dehqani said that the level of water in different parts was not identical, adding that water levels in the 5th reservoir were higher due to the lower depth of the reservoir.Situation under ControlReza Dehqan, deputy CEO of NIOC for development and engineering, said: “Thanks to the arrangements made by NIOC a flood which could have posed a serious threat to the petroleum industry had been contained and we faced minimum damage.” He added that there were no fatalities in the petroleum industry. Referring to the existence of eight dams in Khuzestan Province and the proximity of two dams to the lagoon, he said: “Given proximity to these dams, PEDEC had to exercise selective control in managing the Hoor al-Azim water to spare the surrounding cities and villages any harm and keep oil installations unharmed. I believe that this task was fulfilled and the company went even beyond its obligations.”He noted that the measures undertaken so far were mainly preventive rather than reactive. Oil recovery from West Karoun is a priority for Petroleum Ministry, because most oil fields located in that area are shared with Iraq. Dehqani said oil production from the West Karoun oil fields had not declined despite the recent wave of floods. North Azadegan, South Azadegan, North Yaran, South Yaran and Yadavaran are jointly owned by Iran and Iraq

IOOC to Secure Wells

Most Iranian oil fields are in the second half of their lifecycle. Therefore, their installations need to be reconstructed and renovated. Some oil wells are also mothballed because they have stopped production. However, their fate depends on carrying out necessary studies. It is not clear whether they are to resume production after securitization or they would be abandoned for good. The Iranian Offshore Oil Company (IOOC), which is responsible for operating offshore oil and gas fields, is responsible for the reconstruction of oil and gas platforms, workover on fields and similar operations. Furthermore, IOOC technical teams regularly view wells to detect any possible oil leakage Mohammad Hossein Daneshfar, IOOC director of production affairs, has said that some of wells drilled in IOOC-run areas are ageing. “Twenty decrepit oil wells owned by IOOC would become fully secure,” he said.He added that technical services teams were monitoring the wells round the clock to prevent any possible accident. “Securitization of wells as well as rebuilding and renovation of IOOC platforms are on our agenda,” said Daneshfar. He referred to leakage from C-2A well in the Soroush oil field last December, saying: “This oil well became operational in 1961, but its production came to a halt after the imposed war. Following the reconstruction of a new platform for Soroush, this well and other ageing wells underwent securitization. But this well was among those with no production. During periodical inspections we saw oil leakage.” The oil leakage was detected by the logging team of the Soroush platform. In the first step, it was decided that a well kill team be installed on the wellhead platform of C-2 well, but that could not happen due to bad weather conditions and low visibility at night.The day after oil leakage was detected, a vessel made 15 attempts until it could berth on the location of the well. The idea was to set up structures and provide a ladder which would give access to the wellhead crown. However, due to the decrepit platform, such operation was very risky and furthermore it was impossible to mount the scaffolding.Finally a meeting was held during which it was decided that due to unpredicted conditions, the critical situation of the well and water contamination and the possibility of fire, the staff were to be airlifted onto the central platform. The technical team finally had direct access to C-2 well. It became clear that the leakage had resulted from the flow line which had been ruptured on several points. All valves were inspected and it came out that the wells had not been completely turned off. Furthermore, one of the valves had been spaded under the rainfall of oil and it was closed off. Daneshfar said: “Given the significance of preventing environmental pollution at sea and our sensitivity to this issue we regularly visit well which are no longer producing. This platform had fallen into disuse, but we managed to contain the leakage.”“We have now made plans to make the well fully secure,” he added. Daneshfar said due to regular visits to old platforms and wells no serious accident had taken place. “We don’t need technical support either to contain the leakages and similar problems, and our specialized teams can carry out the task if they are provided with necessary tools,” he added. He said that 20 wells belonging to IOOC needed to become fully secure. “Securitization has various levels: whether we seek downhole securitization before producing from that well or we intend to abandon the well, in which case the well has to become permanently secure,” said Daneshfar.Everything, he said, depends on the volume of operations. “For instance, some platforms have no problem with the installation of rigs, but some others need structural work. The second part of operations is related to the plan we envisage for the well. Do we intend to make the well secure temporarily or permanently?”He said some wells had been blocked during the imposed war in the 1980s. “But we don’t abandon all wells. In prospective reservoir studies, we may conclude that we need enhanced recovery and therefore we can use the existing wells.”Noting that securitization and production would top IOOC agenda, Daneshfar said: “Although we are handling some reconstruction and renovation of wells and platforms through relying on our own facilities, we are likely to award some projects for enhanced recovery to contractors.

Investment Opportunities in Jask Port

Jask Port which is located off the Sea of Oman is among the major ports in Iran. Jask was important since ancient time. It was a marine base and also a center for commercial transactions.Situated 325 kilometers from Bandar Abbas, the provincial capital of Hormuzgan, Jask adjoins the Indian Ocean, overlooks the strategic Strait of Hormuz and is abuzz with trade and fishing. Over recent years, the name of Jask is bandied about as a future special energy zone and a free trade zone. Jask is expected to become an energy hub and serve as the second oil exports terminal to contribute to Iran’s economic boom. In the energy sector, this port can be of economic and commercial significance for Iran because of its specific potentialities. Jask enjoys economic, military and tourist potentialities. The strong points of Jask Port for the Islamic Republic of Iran include suitable coasts for petrochemical infrastructure, transit and shipping routes, Iranian Navy bases, access to high seas, the Indian Ocean and the Sea of Oman, geostrategic, geoeconomic and geopolitical situation and proximity to Oman and Persian Gulf states, as well as rich maritime and nutritive resources.The opportunities for investment in Jask Port include the possibility of building petrochemical plants, oil, gas and petrochemical refineries, exporting energy commodities, energy transit from Jask to other nations, building a second export terminal as alternative for emergency conditions, construction of a multipurpose port, tourist attraction facilities. Other advantages of Jask Port include the possibility of establishing regional cooperation organizations and different military, political and economic unions, and proximity to consumer markets like China. Given water shortages in Iran, power plants could be built in Makran to produce both water and electricity. Unlike the Persian Gulf, the Sea of Oman is connected to the Indian Ocean and therefore environmental damage is minimized.Establishment of a special oil and gas zone in Jask Port would be in line with the perspective and objectives of National Iranian Oil Company (NIOC). Transforming this port into such a zone would attract domestic and foreign investment into building oil storage facilities, jetties and refineries. That would also boost the potential of this region significantly.Energy Hub for Oil/Gas ExportsJask is a port with access to high seas and the Indian Ocean. It can turn into an energy hub for exporting a variety of oil, gas and petrochemical    32March 2019 Issue No. 81MONTHLY33InvestmentInvestmentproducts. Due to its location off the Sea of Oman and access to international trading routes, this port can provide bunkering services to vessels.Proximity to free zones and markets like Central Asia, China and India would give Jask a significant standing. Given global desire for liquefied natural gas (LNG), Jask has potential to build facilities for producing such supercooled gas. Due to its geopolitical conditions for diversifying export terminals outside the Persian Gulf region and in terms of crude oil storage facilities for tackling possible crises, this port can become Iran’s second energy terminal.Jask Port can establish links with oil-rich Central Asian nations. Also as an energy transit port, Jask is able to become an industrial hub dependent on downstream oil and gas industries.The plan for the development of Jask would provide such good advantages like transferring natural gas from the Iran Gas Trunkline 7 (IGAT7) to Jask, transferring crude oil form southern oil-rich zones from Goureh to Jask, transferring ethane from Assaluyeh to Jask, transit of natural gas from Central Asian nations via the Sarakhs pipeline to Jask, transit of crude oil from Central Asia and Caucasus via Neka to Jask, building a crude oil export terminal, natural gas exports from Jask to Oman, building an LNG refinery, petrochemical products, building oil refineries and strategic storage facilities. One of the major projects under way by administration of President Hassan Rouhani is to transfer crude oil from Goureh, which lies within the framework of achievements from the comprehensive development of the Jask energy zone. The Petroleum Ministry is studying construction of an oil pipeline stretching from Neka to Jask with capacity to handle 1 mb/d. If an energy hub is established in Jask, Iranian and foreign producers would be able to sell their latest products in the oil, gas, petrochemical, water, electricity and renewable energy sectors. That would also allow exchange of information and potentialities, establishment of communications between producers, manufacturers of equipment and consumers of equipment. When Iran’s gas goes to Jask Port, petrochemical plants would be founded there. Refinery AdvantagesBy transferring crude oil from Jask Port and building a refinery, it would be possible to produce liquefied petroleum gas (LPG), kerosene, gasoline, gasoil, fuel oil, asphalt, oil and bitumen among other petroleum products.Owing to its suitable location and proper sea depth for the berthing of oil tankers, Jask Port can become the most appropriate place for oil exports and loading. The objective behind the implementation of metallic storage facilities with high capacity is to provide facilities for storing 10-15 million barrels of light and heavy crude oil. Preliminary studies have been carried out for building a gas pipeline stretching from Jask Port to Oman. This pipeline is being built in coincidence with the construction of a gas pipeline going to Jask. The Petroleum Ministry has purchased 5,000 ha of land in Mount Mobarak, 60 kilometers from Jask to build jetties, refineries and storage facilities.

Petroleum Industry Investment; Ups and Downs

OPEC Secretary General Mohammad Sanusi Barkindo has said investments needed to ensure stability in the global oil industry are returning at a slow pace after a downturn  Barkindo said recently: “A number of challenges are arising from the down cycle that we have seen, and at the top of that list, is an issue of investments. We have seen investments contract for couple of years and even at the moment the rebound is very, very minimal.” The International Energy Agency (IEA) had earlier said the low oil prices were to blame for oil divestment. Falling trend of investment in the petroleum industry would in the long term affect global markets and cut production. Such conditions would benefit neither oil producers nor oil consumers. That would not benefit oil companies either. Since 2014 onwards, oil prices have seen fluctuations. Consequently, investors and oil and gas companies have plunged into frustration, losing their sense of distinction about the future of investment in this sector. An 80% slump in oil prices from June 2014 to January 2016 led oil companies to think that investment in this sector would be loss-producing rather than being profitable. Such mindset influenced international investment in the petroleum industry and prevented significant losses from being incurred by oil firms. Many of these companies had no option but to cut jobs and halt their projects across the globe. The pace of return of investment is slow because oil companies see no bright perspective about the price of oil in the future. What adds to ambiguities in the global energy markets is the change in economic equations and the interference of political issues with oil pricing mechanisms.Over recent years, the US has ramped up exerting pressure on oil producing nations to   lift their output in a bid to help drive down the prices. In parallel, Saudi Arabia has made efforts to politicize oil in order to exert pressure on its rivals including Iran. Politicization of oil is one of factors rendering oil price prospects vague. Add to this, the ongoing unrest in some oil producing nations, civil war, and political instability and fight on terrorist groups. For instance, political instability in Venezuela has largely harmed investment in its petroleum industry. A significant portion of oil installations in Venezuela are decrepit, requiring renovation. Civil war in Libya and the existence of local and regional governments in this oil-rich nation has frustrated oil majors. IOCs do not know who they should negotiate with. Meanwhile, fighting for control of oil resources in Libya has had the support of foreign players and their conflicting interests. Iraq has experienced similar conditions to Venezuela and Libya in recent years. War on terrorism and ISIS infiltration into Iraq had stymied any new investment there.In addition to aforesaid nations which are struck by civil war, foreign pressure has also hindered investment by oil companies. For example, US sanctions imposed on Iran have forced many companies to reluctantly pull out of Iran’s oil projects.The US’s destructive policies are not limited to Iran or nations disliked by the White House. These policies have targeted even American oil industry, too. The US’s support for low oil prices has infuriated shale oil producers. The shale producers are unhappy with President Donald Trump’s policies because they would be able to raise output and win bigger market shares only if prices go up. For them, any decline in oil prices would threaten their margins. Furthermore, when prices remain below $50 a barrel on the long term, the value of shale oil would fall. Under such circumstances, investment in shale oil production would fall sharply and even come to a halt.Investment OutlookDespite numerous challenges in the way of oil companies for investment, they have to continue their activities in order to survive. For this reason they try to invest in regions and countries where security is high and profitability is significant. Therefore, oil producing nations are faced with a heavy responsibility with regard to attracting investment. First and foremost, these nations need to steer clear of politicization of oil production and pricing. In the second phase, they have to collectively resist any political pressure exerted by consumers particularly the US to keep oil prices artificially low.Another important issue with regard to attracting investment into infrastructure is to guarantee oil price stability. In this regard, oil producers can make efforts to strike a balance between supply and demand and subsequently help stabilize prices. Undoubtedly, the more nations and oil prices are stable the more willing oil companies would be for investmen

Foreign Firms to Explore Offshore Colombia

Colombia’s Agencia Nacional de Hidrocarburos (ANH) says Repsol, ExxonMobil, and state-owned Ecopetrol have signed exploration contracts for the GUA OFF-1 and COL-4 blocks in the Caribbean off northern Colombia.The planned programs will involve total commitments of more than $700 million, ANH said.GUA OFF-1 covers 400,000 ha, 78 km (48 mi) offshore the Guajira province. Repsol operates with a 50% interest, with the remainder held by Ecopetrol.COL-4 extends over a similar area, 100 km (62 mi) offshore the Bolívar province. Repsol will also operate in this case, but in a 50-50 partnership with ExxonMobil.

ffshore Gas Find in EgyptEni

has discovered gas in the Nour exploration prospect in Egypt’s Nour North Sinai Concession in the Eastern Mediterranean Sea. Located about 50 km (31 mi) north of the Sinai peninsula, the semisubmersible Scarabeo 9 drilled the Nour-1 new field wildcat in a water depth of 295 m (968 ft) and reached a total depth of 5,914 m (19,403 ft)

Saipem Signs Offshore Rig Deals

Saipem has won contracts for offshore drilling with a total value of more than $200 million. One involves drilling two firm plus two optional wells for Wintershall offshore Norway, using the harsh-environment semisubmersible Scarabeo 8. The rig should start the program in 2Q 2020. This is Saipem’s first campaign for the German operator. In the Middle East, the company has secured a four-year extension of a contract for its high-spec jackup Perro Negro 7, which came into force late last month. The Perro Negro 7 can operate in water depths of up to 375 ft (114 m).

Lukoil to Develop Kazakhstan BlockL

ukoil has concluded a contract with Kazakhstan’s Ministry of Energy and JSC NC KazMunayGas for exploration and development of the Zhenis block in the Caspian Sea.Zhenis Operating LLP (a 50-50 venture between Lukoil and KazMunayGas) will operate the project. Minimum work obligations include drilling of one exploration well and a 3D seismic survey. The block is in the southern part of the Kazakh sector, 80 km (49.7 mi) offshore.

Scope Assed for Woodside Projects

Woodside Energy has contracted Subsea 7 to perform engineering studies for three new projects offshore Western Australia and Senegal. In each case there is an option to proceed to the execute phase with an engineering, procurement, construction, and installation (EPCI) contract. Subsea 7’s program for the Julimar gas field, 200 km (124 mi) offshore Western Australia, involves designing, procuring, installing, and commissioning of a 22-km (13.7-mi), 18-in. corrosion-resistant alloy flowline and an umbilical system.

TransCanada Explores Pipeline Unit Sale

Pipeline operator TransCanada Corp is exploring a potential sale of its Columbia Midstream unit in a deal that could value the business at about $1 billion, three sources aware of the matter said.TransCanada, based in Calgary, British Columbia, is offloading parts of its infrastructure to help finance the $8 billion it has earmarked to spend on new projects in 2019, such as the high-profile Coastal GasLink system and the Keystone XL pipeline, which are likely to generate higher returns than these legacy assets.A sale of Columbia Midstream is not guaranteed, and TransCanada’s plans could still change, the sources cautioned, asking not to be named because the information is private. Columbia Midstream’s assets include four gathering systems and a pipeline in eastern Ohio and western Pennsylvania, according to the company’s website. The unit generates around $100 million of earnings before interest, tax, depreciation and amortization annually (EBITDA), and could be valued at a multiple of 10 times that amount, the three sources said. Private equity firms, infrastructure and pension funds have all viewed pipeline assets as attractive acquisitions because of their steady financial returns.TransCanada is working with an investment bank to assist it in the sale process. TransCanada is also selling a package of mineral rights in the same area, located in the Appalachian region of the eastern United States, which would raise further cash for the company, one of the sources said

Petrobras to Sell Pipeline Unit to Engie

Brazilian state-run oil company Petroleo Brasileiro SA has agreed to sell its TAG natural gas pipeline unit to a consortium led by France’s Engie SA for roughly $9 billion, Bloomberg News reported, citing a source.The Engie consortium, which also includes Canada’s Caisse de Dépôt e Placement du Québec, beat out two competing consortia, led by Itausa Investimentos Itau SA and EIG Global Energy Partners with Mubadala Investment Co, respectively, Bloomberg said, citing a source with knowledge of the matter.Petrobras, as the company is widely known, and Engie declined to comment.Sources told Reuters last month that Petrobras was accepting the final round of bids for its TAG gas pipeline unit on April 2, which was expected to bring in several billion dollars and will likely be the company’s largest divestiture in Petrobras’ asset sales program.The oil company had been targeting a sale of a 90 percent stake in TAG, which operates about 2,800 miles (4,500 kilometers) of gas pipelines.Brazil Mines and Energy Minister Bento Albuquerque said he is optimistic that there will be a deal by next week resolving the government’s dispute with Petroleo Brasileiro SA over the offshore oil-producing zone known as the transfer of rights area.Albuquerque said he hoped for a deal in time for the National Energy Policy Council’s (CNPE) meeting set for next week. The CNPE website does not list a date for the meeting.

US Oil Deals Plunge 93% in Q1

The value of U.S. oil and gas mergers and acquisitions fell to a 10-year low in the first quarter, according to data released, as investors pushed shale producers that have driven a recent merger boom to focus on lifting shareholder returns rather than production.The value of oil and gas deals tumbled plunged 93 percent to $1.6 billion last quarter from a year ago to the lowest in a decade, energy consultancy Drillinginfo said in its quarterly M&A review.Investors have urged independent shale producers to stop spending on acreage and on corporate deal-making and return cash to shareholders through dividends and share buybacks

Gazprom Neft Boosts Oil Output Capacity in Kurdistan

Russian oil producer Gazprom Neft has increased the production capacity of its Sarqala field in Iraqi Kurdistan by 25 percent by launching a third production well, the company said.The cumulative daily oil production at the field has reached 35,000 barrels.Gazprom Neft plans to produce 1.2 million tonnes at Sarqala in 2019, of which its share will reach more than 0.5 million tonnes.Gazprom Neft participates in two projects in Iraqi Kurdistan, at the Shakal and Garmian blocks. Garmian includes the Sarqala field

Aramco Treads Carefully on Saudi Ties

For Saudi Aramco and its advisers, a debut international debt issue that could raise well over $10 billion presents a key challenge - how to forge an identity as a state-owned major while in the same league as the likes of Exxon Mobil and Shell.At stake is the likely multi-million dollar difference in interest payments over coming years between its standing as an independent international corporate and one tied closely to the host kingdom whose oil it ships to global markets.Having said in January it was planning its first ever international debt issue, Aramco has been meeting with investors in Asia, Europe and the United States to promote the bonds. It hasn’t commented on what was said during the sessions

China Firm in Low-Sulphur Marine Fuel Deal

China Marine Bunker (PetroChina) Co Ltd, known as Chimbusco, has agreed a one-year supply deal with a COSCO Shipping Corp unit for low-sulphur marine fuel that meets new global environmental rules, according to a Chimbusco statement posted on a social media platform. A Chimbusco executive told Reuters that the marine fuel company will supply 500,000 tonnes of low-sulphur fuel oil in 2020 to COSCO Shipping Lines Co Ltd, a unit that operates container vessels for the China shipping conglomerate. The executive said the 500,000 tonnes makes up half of the annual marine fuel demand at Chinese ports by the whole fleet of COSCO Shipping Corp, adding that Chimbusco expects to source most of the supplies from imports.

Greece’s Hellenic Petroleum Sell-Off Stalls

No binding bids have been submitted for a majority stake in Greece’s biggest oil refiner Hellenic Petroleum, dealing a blow to a key part of a planned sell-off of state assets mandated by international bailouts. Switzerland-based commodities trader and miner Glencore had teamed up with CIEP Participations, and Vitol, the world’s largest oil trader, with Algeria’s Sonatrach after they were shortlisted to bid for a 50.1 percent stake in Hellenic. Greece’s privatisation agency said the lack of bids was “due to reasons related to the short-listed parties and recent developments in the international environment that affect the consortia.” It did not elaborate. An agency official told Reuters that potential investors had made demands beyond what Greece could satisfy. Veto rights and a bigger role for minority shareholders after the deal may also have put prospective bidders off, the official added. The board of the agency will meet to consider the next steps, it said in a statement. Athens has raised 5.8 billion euros from state asset sales since 2010. The Hellenic stake, which is being jointly sold by Paneuropean Oil, Industrial Holdings and the government, is valued at about 1.3 billion euros ($1.5 billion). Hellenic, which exports more than half of its annual output of about 16.5 million tonnes, owns three oil refineries in Greece and also has rights to explore for oil and gas in the country. Workers are opposing the deal, saying Athens is selling off its most precious asset. They staged a three-hour stoppage to protest against the sale

Total to Supply LNG to China

France’s Total said it has signed a 10-year sales and purchase deal with China’s independent gas company Guanghui for annual supply of 0.7 million tonnes of liquefied natural gas (LNG).The super-chilled fuel will be sourced from the French company’s global portfolio and supplied into Guanghui’s regasification terminal in Qidong in East China, Total said in a press release.In a separate statement, the Chinese firm said the new gas purchases will serve a growing gas market in Jiangsu province, where demand for the cleaner-burning fuel is forecast to reach 35 billion cubic metres in 2020. The deal was signed between Total and Guanghui International Gas Trading Co Ltd, a unit of Guanghui Energy.Guanghui’s receiving terminal will eventually have annual handling capacity of 3 million tonnes, the firm said, without giving a timeline.Guanghui started operating a 600,000 tonne-per-year receiving terminal in Qidong in mid-2017.China’s imports of LNG could reach 110 billion cubic metres, or about 80 million tonnes a year, by 2025, a senior executive from China National Petroleum Corp (CNPC) said.The growth will be driven a stringent environmental policy and an accelerated restructuring of the country’s energy mix, among other factors, Ling Xiao told the LNG2019 conference in Shanghai. “LNG price will become one of the decisive factors for the amount of LNG imports,” he also said in a presentation.China’s LNG imports last year were about 54 million tonnes.

U.S. LNG Producers Offer Alternative PricingU.S. producers of liquefied natural gas (LNG) are wooing buyers with offers to sell gas priced against benchmarks other than U.S. domestic prices, ahead of an expected flood of supplies on global markets this year. The United States, the world’s fastest growing gas exporter thanks to surging output from shale fields, is set to become the world’s third-largest LNG exporter this year, taking on more established suppliers such as Qatar and Australia. U.S. producers only began exporting LNG in early 2016 and typically price their sales against U.S. domestic benchmarks such as Henry Hub. To stand out, at least two developers of new U.S. terminals have signed binding and non-binding deals using alternative pricing, executives said on the sidelines of the LNG2019 conference in Shanghai this week. Tellurian Inc and French oil and gas major Total SA signed a deal that includes both companies entering into a binding agreement for 1.5 million tonnes per annum (mtpa) of LNG from Tellurian, which is developing the Driftwood LNG project in Louisiana. The price was based on Platts Japan Korea Marker (JKM), which is a fast-developing Asian benchmark for LNG though mainly for spot cargoes. Most LNG contracts in Asia are still priced off Brent crude. Tellurian and commodities trader Vitol have also signed a memorandum of understanding for long-term LNG supply priced off JKM. “I believe LNG is moving (towards) a gas index,” said Total’s chief executive Patrick Pouyanne.

Saudi Threatens to Ditch Dollar to Stop ‘NOPEC

’Saudi Arabia is threatening to sell its oil in currencies other than US dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy told Reuters. They said the option had been discussed internally by senior Saudi energy officials in recent months. Two of the sources said the plan had been discussed with OPEC members and one source briefed on Saudi oil policy said Riyadh had also communicated the threat to senior U.S. energy officials.The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through, but the fact that Riyadh is considering such a drastic step is a sign of the Saudis’ annoyance about potential U.S. legal challenges to OPEC. In the unlikely event Riyadh were to ditch the dollar, it would undermine its status as the world’s main reserve currency, reduce Washington’s clout in global trade and weaken its ability to enforce sanctions on nation states.“The Saudis know they have US dollar as the nuclear option,” one of the sources familiar with the matter said.“The Saudis say: let the Americans pass NOPEC and it would be the U.S. economy that would fall apart,” another source said.No Oil Producing and Exporting Cartels Act (NOPEC), was first introduced in 2000 and aims to remove sovereign immunity from U.S. antitrust law, paving the way for OPEC states to be sued for curbing output in a bid to raise oil prices.

6 Proposals for Iran E&P Sector

Despite extensive measures taken aimed at development of oil and gas fields in Iran, a review of global trends of investment in the exploration and production sectors shows the significant gap between the potentialities and performance of this industry in Iran Although the regulations governing petroleum industry development are global, the certain regional, economic and social situation of the Middle East has distinguished this hydrocarbon-rich region. That is referred to as development gap.Based on the success stories of Iran’s neighbors, I would like to propose six methods which would contribute to prosperity in this industry in Iran.The regulations governing the approaches applied in the Middle East are not much different from the best experiences in the global E&P industry (in nations like the United States, Canada, Britain and Norway). All these approaches are based on E&P business in compliance with common approaches of the petroleum industry on the global scale.Mideast E&P ProsperityInvestment in the upstream petroleum industry entered the phase of prosperity in 2017 after experiencing a sharp decline in 2015 and 2016. The same trend has been under way in the Middle East with a survey forecasting capital expenditures of $70 billion in the Middle East region. Iran sits atop the world’s largest hydrocarbon reserves. However, Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Oman, Iraq and Qatar are experiencing quite more prosperity than Iran.In Qatar, a new round of development of the North Dome gas field has started while French Total’s activities continue in the al-Shaheen field. Qatar Petroleum has teamed up with ExxonMobil to operate international projects. In the UAE, new agreements have been signed with major international firms like Austria’s OMV, Italy’s Eni, France’s Total, as well as Asian firms like India’s ONGC, China’s Petrochina and Japan’s Inpex. Development activities in sour gas reservoirs and exploration activities are under way in partnership with Eni and PTTEP.Oman has held a new licensing round for awarding six exploration blocks, which are expected to be welcomed warmly. Meanwhile, agreements have been signed with Occidental, Eni and Britain’s BP. In Iraqi Kurdistan, Norway’s DNO is severely continuing its activities, and Iraq has revised its oil contracts to sweeten their terms towards production sharing agreements. Saudi Arabia has maintained strategic cooperation with the world’s leading drilling service providers and focused specifically on unconventional gas reserves. E&P in IranIn Iran, major ongoing activities are related to the final stages of previous contracts signed for the development of the South Pars gas field and the West Karoun area. Three Iran Petroleum Contract (IPC)-style contracts were signed, but only one has been implemented. On a larger scale and regardless of the present circumstances, numerous potentialities have been neglected in the previous decades in the three sectors of exploration & assessment, development & production, and enhanced recovery:Iran’s 14 exploration blocks and other exploration potentialities are investment-friendly.Joint fields like Farzad, Esfandyar, Azadegan, Yaran and Yadavaran have potential for more development and production.The enhanced recovery rate in Iran’s reservoirs lies far distant from the rate of recovery in similar fields in Kuwait, Iraq and Saudi Arabia.The main reason for such a situation pertains to “non-formation of E&P business” in Iran, a business which would be described as developed, competitive and dynamic. Therefore, while Iran was once on par with Saudi Arabia and Iraq, it is now lagging behind both in oil production and exports. Even on the global scale, Iran has failed to produce as much oil as Russia and the US. According to BP, taking into consideration the R/P ratio , Iran may produce oil for 90 years, while the US, Russia and Oman are rated respectively 10 years, 26 years and 15 years. Proposals for FutureThe question here is to know which approaches have been applied in the regional countries to generate revenues. The following are six key proposals based on the experience of Middle East nations: Generating wealth from hydrocarbon resources as ultimate objective: The case of UAE shows that consensus on the necessity of maximum development of hydrocarbon resources would encourage benefiting from successful agreements to meet industrial needs and help develop the industry. Therefore, development of Iran’s massive oil and gas reserves must become a cause of concern shared by all industrialists so that policies would be measured based on the level of industrial prosperity and dynamism.Multilateral Partnership between National, International and Local Companies: A review of the Oman case shows that a dynamic and competitive business environment could take shape in partnership with national companies (OOCEP), international giants (Shell, BP), Omani E&P companies (Petrogas) and small and medium-sized foreign firms (CCED). Using Diverse Models of Partnership for Maximize Value Generation: Over recent decade Iraq has introduced a new hybrid model after launching TSC service contract model for developing its fields. The hybrid model is very similar to production sharing. Oher countries in the region often use production sharing or concessions for partnership. Regulating Competitive Financial Provisions in Proportion to Business Environment Risks: Oman and Iraqi Kurdistan are used to determining the share of government and contractor out of revenue based on the E&P sector’s needs, and fixing a predetermined figure could not clear the way for a win-win game. Leveraging hydrocarbon reserves to attract foreign investment: Qatar and the UAE have used their huge oil and gas reserves to attract foreign investment. The reserves should be used in a more competitive way which would be in proportion to risk levels.Transforming NIOC into Profitable Enterprise: The cases of Qatar Petroleum and Oman’s OOCEP have shown that it would be possible to assign a commercial and international role to national oil companies in the Middle East with a view to maximizing their profits. National Iranian Oil Company (NIOC) must take this point into consideration.

Gas Boosts Liquid Fuel Exports

Development of the giant offshore South Pars gas field - the largest gas reservoir in Iran- has long been faced with restrictions. However, Iranian experts have managed to gain experience amid tough sanctions over the past years and prepare themselves for a new age in developing this jointly owned field.The meaningful relationship between the development of the South Pars field and the development of Iran’s economic, social and political infrastructure is no secret to anyone. In the importance of this field, it would be enough to cite estimates that the reservoir, which Iran jointly owns with Qatar, is valued at about $4,400 billion. To further understand this issue, it is noteworthy that Iran is gaining less than $80 billion a year from exporting crude oil.In 1997, Iran signed the first contract for the development of South Pars. In August 2005, five phases became operational. In the following years up to 2013, five more phases came online.Development of South Pars has picked up speed in the past six years. SP12, which is equivalent of three standard phases, came online in 2014, and SP15 and SP16 became operational in 2015. In 2017, SP17, SP18, SP19, SP20 and SP21 were started up. And most recently four new phases came on-stream. Therefore, the refineries of 15 South Pars phases have come online over the past six years.

Production in South Pars stood at 280 mcm/d in 2013 and now average gas recovery from South Pars has now reached 610 mcm/d in Iran’s sector.Liquid Fuel ExportsUsing gas or liquid fuel for fueling power plants would cost differently. The more Iran replaces liquid fuel with gas, the more Iran would export liquid fuel. That would also impose less cost on fuel consumption in Iran. Moreover, gas, as a clean fuel, is more environmentally friendly than liquid fuels. Gas production currently stands at a record level in Iran. In 2013 liquid fuel and fuel oil made up 47-48% of the power plants fuel. One year after, the percentage was down to 27. In 2015, it dropped to 18% and now it has fallen below 10%.

That has largely contributed to a better air quality and been instrumental in the environment protection. As US President Donald Trump re-imposed illegal sanctions against Iran’s oil exports, the share of gas in the fuel mix of power plants and industries increased, preparing the ground for the export of at least 10 ml/d of gasoil.As new phases of South Pars become operational and Iran’s gas production capacity increases, the natural gas share in the fuel mix of industries and power plants jumped significantly.All power plants in Iran are currently connected to the gas network and all units of the Zahedan and Chabahar gas-fired power plants are to be fed with CNG. Iranian power plants need 75 bcm of gas.In response to US sanctions, one option on the table has been exporting petroleum products, particularly gasoil. Over the past six years, gasoil consumption in Iran has pursued a downward trend.Gasoil consumption in Iran was 105 ml/d in 2013, 100 ml/d in 2014, 81.1 ml/d in 2015, 80.4 ml/d in 2016, and 82.7 ml/d in 2017 and the approximately unchanged in 2018.Iran’s gasoil production has exceeded 100 ml/d and the recent inauguration of a new phase of a gas condensate refinery in southern Iran would stabilize the figure.Meantime, the Tabriz refinery would be producing 6 ml/d of Euro-5 gasoil, the Isfahan refinery 16 ml/d, and the Bandar Abbas refinery 12 ml/d. As the share of natural gas increases in the fuel mix of Iranian power plants, there is capacity for exporting 15 ml/d to 20 ml/d of gasoil. Each liter of Iran’s gasoil is estimated at 60 to 65 cents and Iran can currently earn $6 million to $6.5 million from gasoil exports. On an annual basis, Iran can get $2 billion to $2.3 billion in revenue from gasoil exports. The increase in crude oil prices and subsequently gasoil exports would undoubtedly constitute a scenario on the table for countering oil sanctions. Along with gasoil, Iran can export jet fuel, kerosene, liquefied gas and fuel oil.Gas Penetration Coefficient at 94%More than one century has passed since oil was discovered in Iran, and the country’s fuel and energy mix is subject to changes. Since 2017, consumption of the four core petroleum products – fuel oil, kerosene, liquefied gas and thermal gasoil – has slowed down. Iranian officials say owing to the development of South Pars, Iran’s rural population would be fully supplied with natural gas within two years. Currently, more than 94% of Iran’s population is using natural gas directly. Moreover, 98% of Iran’s urban population and 76% of Iran’s rural population are connected to the gas network. All cities except for a few in Sistan Baluchestan Province are connected to the gas network. Add to this, concerns about air pollution and fears of gas supply cut every winter. A major cause of air pollution was the growing consumption of gasoil and fuel oil. Now the Petroleum Ministry is planning to export gasoil and fuel oil after replacing them with gas.Until 2014, Iran had to import gasoil to keep power plants running, but now Iran is self-sufficient in gasoil production and is able to export. The basic objective sought by the Iranian Ministry of Petroleum is to zero liquid fuel consumption at power plants and industries. Until 2019, gas would be supplied to power plants and about 19,700 industrial units. Iran’s gas production currently stands at 800 mcm/d. Household and industry sectors, and power plants have the highest share in gas consumption. After five new phases of South Pars have become operational with a production capacity of 150 mcm/d of sweet gas, liquid fuel would be driven out of Iran’s fuel and energy mix and only gasoil and gasoline would be used in the transportation sector

NISOC Develops Drilling Mud

Drilling experts at National Iranian South Oil Company (NISOC) have for the first time managed to produce a category of drilling fluid which would be administered in high-pressure drilling to guarantee oil production in full safety without any risk of blowout.

This success story was recorded during drilling Well No 183 at Bibi Hakimieh oil field where drilling operations turned out to be fruitless due to the high pressure of reservoirs, which increased the risk of blowout.Under such circumstances, experts at the Drilling Division of NISOC designed an ultra-heavy drilling mud to carry out drilling without any problem.Safar-Ali Raeesi, deputy head of drilling at NISOC, said: “The Bibi Hakimieh oil field in the southwest is among sophisticated hydrocarbon fields in the world. Drilling experts grapple with various challenges during drilling.”“Earlier, at Well No. 183 of this field, drilling operations at 12 ¼-inch borehole hit a snag due to the high pressure of the reservoir, raising the risk of blowout. Under such circumstances, a special team was set up at the Drilling Division, and various options were studied for overcoming the well pressure,” he added.Raeesi said based on the calculations made for the well, it was concluded that the only option was to design and produce an ultra-heavy drilling fluid weighing 174 pcf. He added that the heaviest drilling fluid to have been registered in Iran weighed 164 pcf.Technical Studies and Lab AssessmentRaeesi said Iran has recorded the world’s highest hydrostatic pressure at hydrocarbon reservoirs. The 164 pcf drilling fluid was designed to counter the outlying layers of Gachsaran Formation. Therefore, in case the hydrostatic pressure is not lower than the formation pressure, blowout is likely to happen. At Well No. 183 of Bibi Hakimieh, due to the well stream and pressure build-up, it was nearly impossible to continue the drilling operation and any accident was likely to occur. Raeesi said: “Experts at the drilling fluid engineering and drilling operations section conducted necessary technical studies and lab assessment owing to their high knowledge and experience before continuing the operations. Given the conditions of the well and based on estimates, the formula for producing drilling fluid from CY-MAX was developed.”Breakthrough in Drilling HistoryRaeesi said the lab-scale prototype of this fluid was first produced from existing materials. The effectiveness of the prototype was tested prior to using the ultra-heavy drilling mud in Well No. 183 at several stages. In the end, the drilling mud overpowered the reservoir pressure and the well was brought under control. The operations continued then without any challenges.This valuable and unique development was registered in the records of Iran’s drilling industry. It is a breakthrough achieved by NISOC Drilling Division staff. Designing and producing such fluid is of high significance because in addition to its weight, it is composed of solid materials for 60% while it incorporates very suitable rheological properties due to the well stream.Drilling Mud ApplicationRaeesi said the existence of drilling mud in drilling is as important as the blood circulation for human body.Drilling mud, also called drilling fluid, in petroleum engineering, a heavy, viscous fluid mixture that is used in oil and gas drilling operations to carry rock cuttings to the surface and also to lubricate and cool the drill bit. During drilling, cuttings are obviously created, but they do not usually pose a problem until drilling stops because a drill bit requires replacement or another problem. When this happens, and drilling fluids are not used, the cuttings then fill the hole again. Drilling fluids are used as a suspension tool to prevent this. The viscosity of the drilling fluid increases when movement decreases; allowing the fluid to have a liquid consistency when drilling is occurring and then turn into a more solid substance when drilling has stopped. Cuttings are then suspended in the well until the drill is again inserted. This gel-like substance then transforms again into a liquid when drilling starts back up.Drilling fluids also help to control pressure in a well by offsetting the pressure of the hydrocarbons and the rock formations. Weighing agents are added to the drilling fluids to increase its density and, consequently its pressure on the walls of the well. Another important function of drilling fluids is rock stabilization. Special additives are used to ensure that the drilling fluid is not absorbed by the rock formation in the well and that the pores of the rock formation are not clogged.Types of Drilling MudDrilling fluids are water-based, oil-based or synthetic-based, and each composition provides different solutions in the well. If rock formation is composed of salt or clay, proper action must be taken for the drilling fluids to be effective. In fact, a drilling fluid engineer oversees the drilling, adding drilling fluid additives throughout the process to achieve more buoyancy or minimize friction, whatever the need may be.In addition to considering the chemical composition and properties of the well, a drilling fluid engineer must also take environmental impact into account when prescribing the type of drilling fluid necessary in a well. Oil-based drilling fluids may work better with a saltier rock. Water-based drilling fluids are generally considered to affect the environment less during offshore drilling.Drilling mud is pumped down the hollow drill pipe to the drill bit, where it exits the pipe and then is flushed back up the borehole to the surface. For economic and environmental reasons, oil-based and synthetic-based muds are usually cleaned and recirculated (though some muds, particularly water-based muds, can be discharged into the surrounding environment in a regulated manner). Larger drill cuttings are removed by passing the returned mud through one or more vibrating screens, and sometimes fine cuttings are removed by passing the mud through centrifuges. Cleaned mud is blended with new mud for reuse down the borehole.

Kupal Oil Output Set to Grow

The Iranian Petroleum Ministry has signed agreements with nine universities and research centers for enhanced recovery from oil fields. Kupal oil field has been assigned to the Sharif University of Technology and National Iranian South Oil Company (NISOC). This cooperation has made good progress over the past three and a half years Shahaboddin Ayatollahi, director of upstream oil research center at Sharif University of Technology, is managing the Kupal project.

Ayatollahi, who is a graduate of University of Shiraz, and has further studied in Canada’s Waterloo University, specializes in enhanced oil recovery. “In the 1990s, the issue of enhanced recovery was not so common in Iran and the world, because oil prices were still very low,” he said. “I remember my professor told me such things would not serve Iran. But we returned to Iran and launched an enhanced recovery group at the University of Shiraz.”He worked at the University of Shiraz for 13 years before joining the Sharif University in 2004. Ayatollah said the Chemical Engineering Department of the Sharif University of Technology had cooperated with National Petrochemical Company (NPC) and National Iranian Oil Refining and Distribution Company (NIORDC) in recent years. “Such cooperation set the stage for the submission of upstream proposals to us. Useful research projects on water injection into Iranian oil fields have been assigned to the Sharif University of Technology by National Iranian Oil Company (NIOC), based on which a well-equipped lab set up has been mounted,” he said.Sharif University of Technology has also cooperated with NIOC in oil reservoirs’ asphaltene. “Field-oriented agreements had already been implemented under the title of enhanced recovery consortium, but these agreements have taken a new shape since 2014 and relations with the Petroleum Ministry have entered a new phase,” he said. He added: “Four years have now passed. At the beginning, there were some issues and challenges, but now problems have largely been resolved.” He said the Kupal oil field had been proposed to Sharif University of Technology by Petroleum Ministry. He noted that Kupal was the “tightest and the most problematic” oil field in Iran.Kupal is estimated to hold more than 10 billion barrels of oil in place. Due to its specific conditions, Kupal’s output is less than similar oil fields in the world. Kupal started production five decades ago, but is now facing numerous challenges. Explaining about conditions of Kupal, he said: “The field has several major problems, the most important of which is casing collapse particularly in the Bangestan reservoir.”“We have currently 60 wells, some of which are producing oil. Casing collapse has occurred time and again,” he said. Ayatollahi added that NISOC had undertaken measures to counter casing collapse; however, they have not been successful enough. He added that several factors including the sophisticated features of the field, drilling, cement job and the location of the well were involved in the casing collapse.Another problem, he said, was the asphaltene content of oil. “Although this field has a proper API, if we fail to control the asphaltene content of this model of light crude oil, pipes and wellhead equipment will be stuck.” “The important issue taken into consideration is that if casing collapse occurs in the reservoir rock, we will face wells sensitive conditions,” he added. Ayatollahi said: “This issue has been among our forecasts after studying the reservoir behavior and conditions. NISOC has already confirmed such anxieties. The daily data of wells production has shown the seriousness of this issue.”Studies on AsphalteneAyatollah said: “Sharif University of Technology in cooperation with a foreign group has conducted detailed studies on its own on casing failure. We have proposed a good model for a single well and we are ready to offer proposals to NISOC to carry out all steps from location to production without hitting any problems. Some of these proposals need no significant change or costs and can apply to new wells.” “On the issue of asphaltene we have already conducted joint studies, but this issue has taken up added significance for oil-rich areas in southern Iran. We received our latest feedbacks and we hope to start our work soon,” he added. “Meantime, it is noteworthy that as a university we did not wait for a contract to be signed and we were quick to study such sensitive conditions soon,” he said.Ayatollahi said Sharif University of Technology had long been studying the issue of asphaltene, which pertains to most fields in Iran. “If we reach a conclusion we can extend it to other fields,” he added. Ayatollahi said three of 16 proposals had been finalized. “After getting authorization from the Ministry of Science, Research and Technology, we established the Upstream Oil Research Center and we hired full-time staff for the post-doctoral level.” “Our proposal for overcoming the first challenge was mentioned at the start of the contract. Our second proposal for casing collapse was presented six months later and we last presented our proposal for asphaltene about a year ago. Over this time studies on enhanced recovery have reached conclusion and we started screening the reservoir in March 2016 in five phases.”He said: “In the second stage we started modelling. We have reached the conclusion that this method is acceptable. Modelling and the lab phase started at the same time and the job has so far been promising.”3 Knowledge-Based Companies LaunchedAyatollahi announced the establishment of three knowledge-based companies under the aegis of this field-oriented project. “We have promised the petroleum minister to have at least ten qualified knowledge-based companies specializing in oil over ten years of work on the Kupal field. Three of them have already become operational,” he said.He added: “These companies are exporting lab equipment and our first service contract with a foreign company has been struck and the atmosphere is promising for the continuation of work.

Iran Oil Nationalization and 1953 Coup

The political plans and projects that were designed and implemented by the United States and the United Kingdom in the run-up to the nationalization of the Iranian petroleum industry in the 1950s sought a single objective: thwarting the national movement in Iran and defeating the nationalization of the petroleum industry

The dispatch of delegates to Iran to hold negotiations, the US-UK adoption of two joint proposals, political flexibility and periodical anger with the negotiations were all seeking to realize the same objective. The schemes, which were strongly backed by Western intelligence services, could overthrow the then government, but what reserved the turn of events was the strong willpower of people of that time. Therefore, a stronger action was needed to overpower people and that was the second phase of the 1953 coup against the government of Iran’s first democratically elected government of Prime Minister Mohammad Mosadeq. In the midst of the second coup, oil was not the only sector to be seized by foreigners; rather, it was the hope of a nation which plunged into the darkness of night, and left the heart of the nation for good. Failed CoupIt was midnight of August 15, 1953. General Nematollah Nasiri, commander of the Imperial Guard, led two armored jeeps and a personnel carrier, backed by a tank, to Mosadeq’s residence. Claiming to be carrying a message from the Shah, he attempted to occupy the house. Mosadeq had already been informed of the coup attempt and he ordered his personal bodyguards to detain the Imperial Guards’ chief. After that, a number of officials including the deputy chief of staff of the Army and two ministers were arrested by the Imperial Guards, but the government secured their release. The following day, the government announced an abortive coup and arrested several others in connection with the putsch. It was no secret to anyone that the coup had been engineered by the US and British governments and had the confirmation of the Shah. Following the failed coup, the Shah flew to Baghdad on his private jet to spare his own life any harm.This coup attempt failed to realize its objectives; however, it cleared the way for another coup which occurred three days later. Due to the direct intervention of the US and Britain, the second coup overthrew the Mosadeq government. Golam-Reza Nejati in his book “Iran Petroleum Industry Nationalization Movement” refers to the secret meeting between the Shah and Kermit Roosevelt, a grandson of US President Theodore Roosevelt, in the lead-up to the coup. “In the midnight of August 1, 1953, just before the referendum, Shah Mohammad Reza had secretly met with Kermit Roosevelt, the head of American spies, in his car in the court of the Saadabad Palace in order to prepare the ground for the execution of the American-British coup for the overthrow of the prime minister who was combatting the American and British colonialists in order to secure the rights of the Iranian nation. During the meeting, the coup engineer had delivered a coded message, which was interpreted as confirmation on the part of [then British Prime Minister Winston] Churchill and [US President Dwight] Eisenhower, to the Shah of Iran. The monarch, who had already sworn on the Quran to safeguard the Constitution, followed the instructions of the enemy one by one.” Kermit Roosevelt has confirmed arrangements with the Shah in the lead-up to the coup. He has written in his memoirs that along with Bill Herman, he had met with delegates from the Anglo-Iranian Oil Company (AIOC).The anti-Mosadeq coup was not the only plot arranged by the US government. Designation of Maj. Gen. Fazlollah Zahedi as successor to Mosadeq was the next phase of the plot. On August 12 that year, the Shah had secretly named Gen. Zahedi as prime minister, but this appointment was to be notified to Mosadeq on due time. August 18 and End of StoryThe government was still reeling from the failed August 15 coup that another coup was executed with the direct and over intervention of two foreign governments and the cooperation of the Shah and his agents. The coup was started in the bazaar when riots were triggered by supporters of the Shah and the unrest gradually engulfed Tehran. According to pre-arranged plans, the rioters were chanting “Vive the Shah” and “Down with Mosadeq” and raiding the offices of anti-Shah newspapers including Bakhtar-e Emrooz, Towfiq, Haji Baba and Be Souy-e Ayandeh. They also seized the Post and Telegraph Office in an attempt to cut any communications between the national movement leaders and Iranians across the country. The rioters used mass media to play songs and read out statements in support of the Shah and in opposition to the national government. That was aimed at instigating people across the country to take to the streets and show support for the Shah. ,A group of hooligans were also deployed in downtown Tehran. They were divided into smaller groups to attack ministries, banks and government offices. Gholam-Hossein Seddiqi, the Home Secretary in Mosadeq’s Cabinet, briefly explains the coup: “News spread across the city that groups of 200 and 300, backed by military officers and soldiers, were being carried in armored personnel carrier to chant slogans in support of the Shah and against the then prime minister. It was also heard that a group of rioters had raided the telegraph center in a bid to seize the building. There were also about 300 rioters gathering in front of the Ministry of Justice. Three to four trucks were carrying pro-Shah activists, while a group of people were following them and chanting slogans in favor of the Shah. A truckload of guards was backing them.” The same day in the afternoon, the putschists had raided the house of the prime minister and occupied the residence. Mosadeq’s residence was ransacked, properties were looted and most of the building was reduced to ruins. Mosadeq had been taken out of home by his supporters just before the coup. He had taken refuge in neighboring houses. Mosadeq and his associates were arrested the following day by police officers and taken to the Club of Offices. The Ettelaat daily newspaper related the story of seizure of Mosadeq’s house as follows: “At 5 pm, several tanks and a group of soldiers were ordered to move to Mosadeq’s house. As soon as the tanks arrived, the defenders of Mosadeq were overpowered by a cannonball and machinegun fire. A tank broke into Mosadeq’s house and people entered for looting and setting fire to the belongings. Nothing was left unharmed in the house

Petrochimi Bandar Imam, Tennis Champion

Petrochimi Bandar Imam, one of the affiliates of Iran’s petroleum ministry, is simultaneously involved in several sport disciplines at. However, the most important field of activity of this club is basketball. Petrochimi Bandar Imam BC has already had brilliant performance in Asian championship matches. Alongside basketball, Petrochimi Bandar Imam has been engaged in table tennis. For the fourth year in a row, it managed to become national champion in Iran’s table tennis pro league

The 27th round of table tennis pro league matches ended four months after kickoff. The exclusively male matches started in November last year. In the preliminary stage, eight teams were competing. The playoff stage was attended by four teams screened in the first stage. In the final phase, Petrochimi Bandar Imam with 26 years of experience in the league became champion. It was the ninth time Petrochimi Bandar Imam won table tennis championship title.Powerful ChampionshipThe semi-finals saw Petrochimi Bandar Imam and the Islamic Azad University team defeat their rivals respectively: “Raad Padafand Havai” and “Palayesh Naft Abadan”. That was how “Petrochimi Bandar Imam” and “Islamic Azad University” forced their ways into the final.Headed by Coach Vahid Kazeminejad, “Petrochimi Bandar Imam” had overpowered Palayesh Naft Abadan. In the final matches, Petrochimi Bandar Imam trounced “Islamic Azad University” 6-2 to safeguard their championship title and celebrate their fourth straight victory. It is ironical that “Petrochimi Bandar Imam” had been defeated 2-4 against “Islamic Azad University” in the preliminary stages. However, in the finals, the loss was compensated.Best Trained SeedsThe “Petrochimi Bandar Imam” table tennis team had such well-trained seeds as Noshad Alamian, Nima Alamian, Afshin Norouzi and Amin Ahmadian. From the very start of the matches, Petrochimi Bandar Imam had the highest chance to victory. It finally celebrated its 9th victory. “Palayesh Naft Abadan” and “Raad Padafand Havaei” jointly ranked the third. 

Interview with CoachWe’re National Record Setter

Vahid Kazeminejad, the trainer of “Petrochimi Bandar Imam”, says no other team had already set such record. He says “Petrochimi Bandar Imam” is the first team to have won the championship title for the fourth time in a row. The following is the full text of the interview Kazeminejad gave to Iran Petroleum:  You became champion again. What do you think of that?That’s a record. No other team has already managed to win championship title for the fourth consecutive time in the same discipline and in the pro league matches.Did you ever think of winning the championship title again?We had stepped into the matches to win the championship title and we had no other objective. No team can claim from the very beginning to be the champion. But our tennis seeds did their best throughout the matches and they were finally compensated through their win.How do you assess the quality of competitions this year?That was very good and in light of changes made in this year’s games by the Federation, I can say that the competitions had become even more attractive. A total of nine teams took part in the games, all of which were from the best teams of Iran. The competition was like a revenge. For instance, “Islamic Azad University” was the top in the preliminary stage, but we defeated it in the final match.To what extent was the presence of Nima Alamian of help in your championship?Nima is a super seed. He was with us from the start of the season. Although he could not help us in some matches of the preliminary stage because of his problems, he joined us in the final match and he was instrumental. I should also acknowledge that Nima’s brother (Noshad), and Afshin Norouzi, our captain and also the national team captain, were key factors in winning the championship title. We have a well-organized team and every single member was instrumental in the championship title.Will Iran’s champion go to Asian matches?So far, there have not been Asian table tennis matches. But this year, following consultations led by the Table Tennis Federation, competitions are expected to be held between West Asia and Central Asia. If that comes true, Petrochimi Bandar Imam as the champion and Islamic Azad University, the second-placed team, will represent Iran in the Asian matches. How come we have not had Asian tennis cup so far?At the national level, the Chinese are the undisputed champion of Asia. In global matches, the Chinese are among top ones. Therefore, club-level matches are not important for them and they have not taken any action to that effect. But in Europe, club-level matches are held. Iran’s tennis federation favors West Asian tennis matches due to the growth and development of table tennis and the high experience of players and stronger presence in international arenas. In case the planned matches prove to be successful, they would be generalized to the entire continent.How many national seeds do you have in your team?Four of our main seven seeds are from the national team. The Alamian and Norouzi brothers are among the most prominent seeds of our team.

West Azarbaijan Province may be billed as a small treasure of ancient Persia. There are remnants of human beings dating from the first millennium BC in this northwestern Iranian province. Add to this at least two World Heritage sites, thousands of monuments, diverse nature, woods, tall mountains and ethnic groups. The emergence of Assyrian, Medan and Parthian civilizations, among others, before Islam was revealed and the establishment of dynasties in this part of Iran where minority Turks, Kurds, Armenians and Assyrians have long coexisted would make West Azarbaijan the largest center of cultural interaction and the historical capital of Iran. West Azarbaijan is home to an 8-millennium-old civilization which hides many mysteries, a unique civilization welcoming many Iranians particularly during New Year holidays. St. Thaddeus MonasterySt. Thaddeus Monastery is an ancient Armenian monastery located in the mountainous area of West Azarbaijan Province, about 20 kilometers from the town of Maku.The monastery is visible from a distance because of the massiveness of the church, strongly characterized by the polygonal drums and conical roofs of its two domes. There are several chapels nearby: three on the hills east of the stream, one approximately 3km south of the monastery on the road to Bastam, and another that serves as the church for the village of Qara-Kilise. One of the 12 Apostles, St. Thaddeus, also known as Saint Jude, (not to be confused with Judas Iscariot), was martyred while spreading the Gospel. He is revered as an apostle of the Armenian Apostolic Church. Legend has it that a church dedicated to him was first built on the present site in 68 AD. Not much appears to remain of the original church, which was extensively rebuilt in 1329 after an earthquake damaged the structure in 1319. Nevertheless, some of the parts surrounding the altar apse date from the 10th century. A fortified wall surrounds the church and its now-abandoned monastery building

Qare ZiauddinThis

city lies in the northern part of the county, 39 kilometers from Khoy. Qara Ziauddin is a real paradise in terms of climate so that and many crops, even pistachios, saffron, banana and rice may be grown in this city, its air is not even one percent infectious and its market economy is from all over the city.

Pouryaye Vali TombP

ouryaye Vali was a famous wrestler attracts many tourists. He is said to have been buried in Khoy. That represents a good opportunity for Iran’s tourism industry.Pouryaye Vali was known to be among the most popular “zurkhaneh”(club for Iranian traditional sports) athletes.