Page 6 - DMEA Week 45

DMEA COMMENTARY DMEA

Energy sector updates as Iran

hopeful on Biden win

The Islamic Republic is hopeful that the new US President-elect will bring Washington back to

the negotiating table, while updates have been provided on the country’s energy sector

IRAN AS Iran continues to utilise domestic companies bullying of outgoing regime and accept multilat-
to develop the country’s oil and gas projects, eralism, co-operation and respect for law.”
WHAT: President Hassan Rouhani has spoken optimis-
Iran’s relationship with tically about the election of Joe Biden in the US. Rig installed at SP11
the US was as strained In May 2018, incumbent President Donald The high-profile project to develop phase 11
as ever under the rule Trump pulled the US out of the Joint Compre- of the supergiant offshore South Pars gas field
of Trump, and Biden’s hensive Plan of Action (JCPOA), also referred to is illustrative of the efforts of domestic compa-
victory may present an as the Iran nuclear deal, and there are hopes that nies to ramp up capabilities across oil and gas
opportunity to improve his Democrat successor will take a more prag- assets. Last week, Pars Oil and Gas Co. (POGC)
relations. matic stance towards Tehran. announced that the MD-1 drilling rig had been
Following the implementation of the JCPOA installed at the phase.
WHY: in 2015, numerous IOCs signed memoranda of The company’s project leader Mohsen Rezaei
Trump pulled the US out understanding (MoUs) for oil and gas fields, but told the official Shana state energy sector media
of the JCPOA, reinforcing talks broke down in the wake of Trump’s decision outlet that the 2,200-tonne unit owned by
sanctions on the country to walk away from the deal. MAPNA Drilling Co. had been moved to the
and leaving domestic While Iran has made notable progress on SPD11B location ahead of beginning a 12-well
Iranian companies to fields that had been lined up under the terms of drilling programme. Rezaei said that the “drill-
develop major oil and gas the integrated petroleum contract (IPC) model, ing [of] 12 appraisal/development wells has
assets. the expertise of international partners is seen as started to achieve a daily production capacity of
key to addressing low recovery rates, particularly 1bn cubic feet [28mn cubic metres] of sour gas
WHAT NEXT: at oilfields in the West Karoun oil region. from the phase.”
If tensions are eased, Speaking during a cabinet meeting, Rouhani He added that the SPD11B wells will be
there may be an said: “Now, a chance has turned up for the future drilled in two stages. The first phase will com-
opportunity for IOCs US government to compensate past mistakes prise the drilling and completion of five appraisal
to resume talks for and return to the path of commitment to inter- or development wells and installation of the
some of Iran’s largest national obligations by respecting global norms.” SPD11B platform, targeting an initial produc-
hydrocarbon projects. He added: “Iran has been always committed to tion level of 500mn cubic feet (14 mcm) per day.
its obligations as long as all other involved sides Thereafter, a further seven development wells
comply responsibly.” will be drilled and completed to increase gas
Meanwhile, Foreign Javad Zarif wrote on recovery from the platform to 28 mcm per day.
November 8: “The world is watching whether POGC’s main contractor for work on SP11
the new leaders will abandon disastrous lawless is Petropars, which is carrying out jobs on the

P6 www. NEWSBASE .com Week 45 12•November•2020