Second MOU for Bamdad Exploration Block
The second memorandum of understanding for exploration studies in the Bamdad offshore block along with a non-disclosure agreement has been signed. The MOU was signed between Saleh Hendi, director of exploration at National Iranian Oil Company (NIOC), and Saeed Shad, CEO of Iranian Offshore Engineering and Construction Company (IOEC). Hendi said NIOC and the Petroleum Ministry had undertaken measures to facilitate the presence of domestic companies in exploration. “Owing to their qualified manpower, equipped systems as well as necessary knowhow and technology, Iranian companies can get involved in numerous exploration projects and present an acceptable performance,” he added. Hendi said: “In the past, studies on all exploration blocks were carried out by foreign companies, yielding favorable results. Some of those blocks are developed and operational.” He said over the past one year, feasibility studies for the Toudaj block had been assigned to the Iranian company TANCO. Hendi said the Bamdad block was the best among a group of 14 envisaged for development by the NIOC Directorate of Exploration. He said the proven oil system in Bamdad showed it was low-risk. He said IOEC was experienced enough for the development of the Bamdad block. “After signing this MOU, we also
8-NIOC, PEDC Eye Cooperation
National Iranian Oil Company (NIOC) and Pasargad Energy Development Company (PEDC) have studied avenues of long-term cooperation in Sepehr and Jofair fields’ development. During the first meeting of NIOC-PEDC joint management committee (JMC), Reza Dehqan, deputy CEO of NIOC for development and engineering, said: “The direct investment value of this agreement stands at $2,427 million for a 20-year period.” He added: “The first production target is to reach 21,000 b/d output after 30 months, which would reach 110,000 b/d ceiling. The accumulated production from this field is estimated 500 million barrels.” Dehqan said Sepehr and Jofair development agreement was the third IPC contract NIOC signed. “This agreement has been signed with an Iranian company, but the latter can have a foreign partner in the future,” he added. Mehdi Mir-Moezzi, CEO of PEDC, said: “We had plans to benefit from a foreign company’s presence in this agreement and even talks with two companies had been finalized, but these two companies pulled out due to the US withdrawal from the JCPOA (Iran’s nuclear deal). However, we are still determined to benefit from a foreign partner.” He said the 20-year period for the agreement was an advantag
NIOC Seeks New Methods of Investment Attraction The CEO of National Iranian Oil Company (NIOC), Masoud Karbasian, has said that new methods of financing are being sought in order to accelerate the implementation of oil and gas projects. “Using various bonds and new methods of financing with a view to attracting investment for accelerating the implementation of oil and gas projects is on the agenda,” he said. Karbasian said NIOC would try to offset the vacuum left by foreign investors with Iranian investors. He added that in the upstream oil sector, the private sector and ordinary people must be engaged in order for government projects to become economically viable. Karbasian said: “Oil deposits are God-given resources and according to the Islamic Republic of Iran’s law they belong to the Iranian nation. Therefore, in order to convert these resources into wealth for all people, we can get them engaged.” He said that talks were under way with
-Condensate Refinery Euro-5 Gasoil Output at 20ml/d The Bandar Abbas gas condensate refinery has raised its Euro-5 gasoil production to 20 ml/d, CEO of the refinery Mohammad Ali Dadvar said. He said that the refinery had increased its refining capacity by 90,000 b/d and has reached 450,000 b/d. “Now that the refining capacity of this refinery has reached 450,000 b/d of gas condensate, on average between 17 and 20 ml/d of Euro-5 gasoil and 47 ml/d of Euro-5 gasoline is produced at this refinery,” said Dadvar. He said that initially four phases were envisaged for the refinery, adding that the activity forecast for four phases is now distributed between the three existing phases. “Through optimization in the existing three phases, a total of 90,000 b/d has been added to the refining capacity of the refinery and another 90,000 b/d is to be added after receiving authorization for feedstock,” he added. Dadvar said the fourth phase was initially for treating another 120,000 b/d of condensate, the plan was reconsidered and renamed capacity optimization and debottlenecking. “The initial investment for phase 4 was estimated at €980 million, but with debottlenecking at €90 million, about €900 has been practically saved, which could be invested in other
PGPIC 2nd in ICIS Ranking Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) came second after Germany’s Basef in the Independent Chemical Information Service (ICIS) 2018 ranking in terms of investment volume, PGPIC CEO Jafar Rabiei said. He said PGPIC came 9th in the 2017 ranking of ICIS, but it managed to improve its position after one year. Rabiei also said that the latest sanctions imposed on Iran’s energy sector were unprecedented. “With the imposition of sanctions, some problems were created in domestic sales and exports of chemicals, but our colleagues managed to reduce the impact of sanctions,” he said. Rabiei touched on a 53% increase in PGPIC revenue in 2018 from that of the year before, adding the company recorded a 110% growth in operating profits, 99% growth in investment profits and a 137% net profit in the same period. Describing PGPIC as a “profitable” company, he said it held 12% of Iran’s capital market. “The stock market value of six subsidiaries of this holding stands at IRR 1,350 billion,” he added. Rabiei said the Lordegan petrochemical plant, Ilam olefin, the first phase of Bid-Boland gas refinery, the first phase of flare gas gathering facilities in southern oil-rich regions and the Urmia potassium sulfate would become operational by March 2020. He added that the startup of the Bid-Boland, Ilam
adding: “We are able to provide necessary guarantees in this regard.” Karbasian said about IRR 80,000 billion had been provided through capital market for financing oil projects. The NIOC chief also said Iran’s petroleum industry would support domestic companies, noting that the domestic manufacturing of commodities in Iran had saved the country about €300 million. Karbasian acknowledged that private sector actors were faced with such problems as fluctuations in the exchange rate and increased costs. He said NIOC was trying to find solutions to their problems.
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