Hormuz Strait Exports Risk Decline
Rashid Seyedian, director of the Goureh-Jask crude oil pipeline project, has announced plans for the early startup of the project in 2020.
“This project is expected to carry 1 mb/d of light and heavy crude oil from the Goureh area in Bushehr Province to Jask in Hormuzgan Province in order to reduce export risks via the strategic Strait of Hormuz,” he said.
He added that the project involves a 1,000-km-long 42-inch diameter pipeline. In addition to that, he said, the Jask storage project with a capacity of 10 million barrels in phase 1 and 20 million barrels in phase 2, single point moorings for crude oil exports as well as utilities would be also involved.
Referring to investment in this project, Seyedian said: “About $2 billion in capital is estimated for the Goureh-Jask crude oil pipeline, which we hope the required credit would not go beyond."
He said tender bids for the project were under way, adding: “In addition to the pipeline project, we have about 200 km of power supply to this project. Three contractors will be handling it. The contractors are to be chosen via a tender bid.”
Seyedian said the 1,000-km project would have six extensions, each 150 to 220km long.
“The tender bid for five pumping stations, two pigging stations and a terminal have been held and the contractors have been chosen. They have received the National Iranian Oil Company (NIOC) certification,” he said.
5-Tabriz Refinery to Upgrade Products
Gholam-Reza Baqeri Dizaj, CEO of Tabriz Oil Refining Company, said the Tabriz refinery would boost the quality of its products in a bid to complete its value chain and attain sustainable development.
“In light of the significance of the issue of reducing fuel oil output, this company had earlier conducted feasibility studies with two foreign companies in 2017 for building related units. But due to sanctions imposed on Iran, it was impossible to benefit from financing to run the project,” he said.
Baqeri Dizaj said the project was updated in 2018 following a field assessment by well-known technological companies and feasibility studies.
“Later on, with the objective of acquiring technical knowhow, basic design of constructing processing units was done under a contract with four companies,” he said, adding that the project is in the stage of acquisition of technical knowhow.
Baqeri Dizaj said the contractor for front-end engineering design (FEED) would be selected by next September.
He said since its privatization, the company has spent over €369 million plus IRR 406 billion for environmental projects as part of its sustainable development projects.
“These projects included euro-5 gasoline production (3.3 ml/d) and 7 ml/d of euro-5 gasoil,” he said.
“Sulfur granulation, flare gas recovery for capping greenhouse gas emissions, separation of oil, biological and lime sludge, and installation of real-time detection systems are among other environmental activities of the company,” said Baqeri Dizaj.
He said the refinery had received environmental award from Petroleum Ministry for two consecutive years.
6-South Pars Output Capacity to Grow 60mcm/d
Mohammad Meshkinfam, CEO of Pars Oil and Gas Company (POGC), announced the planned installation and operation of five gas platforms at the South Pars gas field in the current calendar year.
“By the end of the current Iranian calendar year (March 2020), the gas production capacity of the jointly-owned South Pars gas field will increase by 60mcm/d,” he said.
Meshkinfam said two offshore platforms in SP14 became operational and 1 bcf/d of sour gas was recovered from these two phases last calendar year.
“SP14 is in desirable conditions. According to plans, the remaining two platforms of this project each with a capacity of 500 mcf/d would become operational by the end of the current Iranian calendar year. The refined gas from these two platforms would be delivered to a South Pars refinery for treatment,” he added.
Meshkinfam expressed hope about upgrading the qualities of the project contractor with a view to accelerating the construction of the refining section of SP14.
“Some changes have been made at the managerial levels of the client. Certain changes are also expected in the contractor group,” he said.
He added that the first sweetening train of SP14 refinery would become operational by the end of the current calendar year or early next year.
SP13 Output up 500mcf/d
Meshkinfam referred to the official commisioning of SP13 last March and the start of operation from two offshore platforms of this project, saying: “This year, another platform of this phase with a recovery capacity of 500mcf/d of gas would become operational.”
SP22-24 Recovery to Rise 1bcf/d
Meshkinfam went on to speak about plans for the recovery of 1bcf/d of sour gas from SP22-24, saying: “Two other offshore locations of this project would become operational in the first half of the current Iranian calendar year and sour gas recovery from SP22-24 would reach full capacity.”
He said the completion of the refining section of this project and its official commisioning in 2018, the gas recovered from the two new locations would be sent to the refinery of SP22-24 for processing.
Therefore, gas recovery from South Pars would increase by 78mcm/d this year. Petroleum minister Bijan Zangeneh had earlier hinted at 60mcm/d increase in the output from this giant offshore field which Iran shares with neighboring Qatar.
7-Ten Wells to Be Drilled in South Azadegan
Hamid-Reza Khoshayand, deputy CEO of National Iranian Drilling Company (NIDC), has announced the start of operations for drilling 10 new wells in the South Azadegan oil field ahead of schedule.
He said that Fath-92 drilling rig was being transferred to the location of the project.
Khoshayand said two more drilling rigs would be used for new drilling, adding that 20 wells were being completed in location No. three of the project.
“The drilling project in the South Azadegan oil field is under way on a turnkey basis. The design, management, supply of commodity and materials as well as provision of services are all upon this company,” he said.
Khoshayand said the projects which had been carried out in South Azadegan were among NIDC projects implemented in West Karoun under supervision of Petroleum Engineering and Development Company (PEDEC).
He referred to the completion of operations for drilling seven wells in the Azar oil field, saying: “The depth of hydrocarbon reservoirs and the need for drilling in various oil formations are among the outstanding features of this field, which make drilling operations very complicated and long.”
Khoshayadn also touched on the continuation of drilling in SP14 whose client is Pars Oil and Gas Company (POGC).
“In this phase, NIDC was expected to drill 22 wells. Fourteen wells have had 85% progress. Seven wells on Platform A and seven on Platform C have already been delivered to the client,” he said.
Khoshayand said the remaining eight fields would be soon given to the client.
8-Industrial Actuators Made in Iran
The CEO of Iran Oil Terminals Company (IOTC) has announced that industrial actuators may now be manufactured in Iran.
“The components of valves were monopolized by European and US companies. But now thanks to domestic manufacturers, we build them completely,” said Abbas Assadrouz.
“The philosophy of establishment of knowledge-based companies in the oil sector was to help development of oil companies and manufacturing of new equipment and parts by using the knowledge and experience of academics,” he added.
“Under the current circumstances, development units are under increased pressure. That is the best time for the effective presence of knowledge-based companies to help overcome challenges in decrepit units and supply new products,” Assadrouz said.
He said that the formation and development of startups would be in two stages known as weekend and demo.
“Weekend startups are in the stage of introduction of project and demo startups in the stage of industrialization,” he added.
Assadrouz said signing MOUs with knowledge-based companies was a way to get around new sanctions, adding: “The first actuator built by domestic manufacturers is used widely. It was installed at the Kharg oil terminal. The manufacturing of this equipment costs 60% lower than that of imported ones.”
IOTC is engaged in storage, measurement, providing laboratory services, handling crude oil, petroleum products and gas condensates imports and exports, as well as offshore services. The main mission assigned to IOTC is to contribute to the sustainable production of oil and gas, loading and offloading of oil and storage.
9-Energy Saving to Serve Exports
Ahmad Khan-Beigi, director-general of research at the Petroleum Ministry, said positive measures undertaken to save energy waste would help boost exports.
He said that cutting energy waste “would increase our production from oil fields for delivery to the end of the value chain, i.e. exports or end users.”
“When we talk about saving, one of indexes striking mind is the energy intensity which comprises energy consumption and gross domestic product (GDP),” said Ahmad Khan-Beigi.
“In both cases, effective parameters, effectiveness of processes, generation of value in the supply of products or services and saving energy in the oil value chain from upstream to downstream sectors must be taken into consideration,” he added.
Beige said inexpensive measures like installation of energy standards like ISO 50001 and conducting technical inspections in the energy consumption sector would help save enough energy in the industrial sector.
“Energy service companies in the world offer advice in energy auditing and present appropriate approaches in order to save more energy in the industries. The Petroleum Ministry should continue to support such companies more firmly,” he said. “Making efforts to save on energy along with increasing the GDP share, would reduce energy intensity, cut industrial pollution and result in the formation of new businesses.”
10-Sohrab Field Awarded to Iran Firm
Jahangir Pourhang, CEO of Arvandan Oil and Gas Company (AOGC), said an Iranian company would be tasked with developing the Sohrab oil field.
Pourhang also referred to the Jofair and Sepehr fields administered by AOGC, saying: “According to the decision made by National Iranian Oil Company (NIOC) , Pasargad Energy Development Company is to develop the Sepehr and Jofair oil fields. The company is waiting for the final permission to start work,” he said.
AOGC started out in 2004 and was immediately involved in the development of the Darquain field.
AOGC is charged with operating oil fields located in West Karoun in western Iran. “Of a total 13 fields we have in West Karoun, 6 are jointly owned with Iraq,” said Pourhang.
He added that AOGC could now produce 450,000 b/d of oil, adding: “We are pursuing our plan to increase our production capacity by the end of the [calendar] year. NIOC plans to reach the target output of 1mb/d in West Karoun b 2025.”
Pourhang touched on gas gathering in West Karoun and said: “Some of associated gas would be gathered through NGL 3200 and about 50mcf/d by the successful bidder. The new contractor is expected to install its facilities within 18 months.”
Referring to domestic manufacturing in Iran, he said: “In the past, we had bottlenecks with regard to the supply of some equipment. But we are currently using domestically manufactured equipment installed 4,000 meters deep in the wells and under 100-degree centigrade temperature. Domestic manufacturers have made us independent of foreign equipment purchase.”
11-4,100km Gas Pipe Envisaged by 2025
Bahram Salavati, acting manager of the Iranian Gas Engineering and Development Company (IGEDCO), said 4,100 kilometers of gas pipeline would have been constructed by 2025.
He said that 580 kilometers would be laid in the current calendar year to March 2020.
Salavati said IGEDCO had implemented the ethane gas transmission project, the Kahnouj-Jiroft pipeline and Kashmar gas pipeline, partly inaugurated Iran Gas Trunkline 9 (IGAT-9) and the Sarbisheh-Nehbandan gas transmission line, which total 737 kilometers in length.
He said that IGEDCO had operated 20 units of the Ahvaz facility in IGAT-6, 10 units in Khourmowj and 10 water distribution installations in IGAT-5. Other activities included the inauguration of a refinery producing gas odorants, a gas measurement station as well as a support power distribution post.
Salavati referred to natural gas storage projects, saying: “Drawing up technical and contractual documents for the second phase of gas storage in the Shourijeh field using BOT, completing the feasibility of gas storage in the Qezel Tappeh field, signing a treaty for appraisal well drilling and concluding pre-feasibility studies in the Baba Qir and Bankoul fields were among IGEDCO projects in natural gas storage last calendar year.
“Chief among important achievements of IGEDCO in the last calendar year are: Iran joining the producers of mercaptan, inauguration of an ethane gas pipeline from site 2 of South Pars to petrochemical plants, South Pars refinery gas measurement stations, inauguration of value chain projects in South Pars during commissioning SP13 and SP22-24, upgrading time-cost management in implementing the project with technical, quality and safety standards as well as development of other infrastructure projects along with the development of pipelines” said Salavati.
580km Pipeline Project under Way
Salavati also touched on IGEDCO main plans for the current calendar year, saying: “In the gas transmission lines, we have to complete 850km of pipeline, outsource 2,000km and supply 200km of slabs and pipes.”
Regarding natural gas storage projects, he said: “Outsourcing development of the Shourijeh and Sarajeh fields, drilling appraisal wells in the Qezel Tappeh fields and completing the MDP of the Nasrabad field, completing the metering station of Bazargan, outsourcing development of the Ilam refinery and building gas condensate storage tanks are among these projects.”