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problems in payments of natural gas. I have given the necessary orders to the relevant officials.”
Since the Islamic Republic remains under US banking sanctions, Iraq is unable to freely transfer foreign currency to Tehran for gas and electricity imported from Iran.
Iranian officials have publicly estimated that Iraq owes Iran around $2bn in overdue payments for such supplies. Iraqi officials maintain that the payments have been transferred to Iran's account at Tejarat Bank of Iraq, from where it cannot progress because of the sanctions.
The value of Iran's annual exports of electricity and gas to Iraq is estimated at $2bn.
Radio Farda noted that the World Bank last August said it was deeply concerned by Iraq’s dependence on food imports, meaning it is unclear how Iraq can pay back its energy debts to Iran partly by exporting food to its neighbour. There is the prospect that Tehran could buy in food and medicine shipments ordered by Iran but delivered via Iraq, but it is unclear if that is the kind of arrangement the Iranians have in mind.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Iran adds 420mn cubic metres of gas extraction to South Pars recovery under Rouhani
Iranian oil company signs ‘$460mn’ deal for new field expansion
The CEO of Pars Oil and Gas Co. (POGC) has said that the company has increased gas extraction from the giant South Pars gas field in the Persian Gulf by “420mn cubic metres a day” under the current administration, SHANA reported.
The entirety of South Pars in the Persian Gulf, shared by Iran and Qatar, is thought to comprise the largest gas field in the world. However, the development of the field in Iranian waters has been hampered by US sanctions imposed on Tehran. In August 2018, sanctions put an end to French energy major Total’s planned participation in South Pars hydrocarbon extraction. According to the company director, current daily output stands at 700 mcm, with 37 out of 39 platforms installed and now fully operational across the offshore and onshore sites.
Speaking to IRIB national television, Mohammad Meshkinfam noted the 94% fulfilment of the company's instructed production plan, saying all phases of the gas field, excluding Phase 11, were operational.
Meshkinfam added that by the development of other fields and enhancing the productivity of South Pars, 75% of the country’s demand for energy would still be met from the field in the next 25 years.
Seven years ago, South Pars' production level for Iran stood at 270 mcm per day, but extraction has risen thanks to several fields and the Persian Gulf Star Refinery opening.
Iran’s Persia Oil and Gas Industry Development Co. has signed a deal for the development of the Yaran oilfield, estimated to be worth “$460mn”, according to the state-run National Iranian Oil Co. (NIOC), SHANA reported on July 15.
The deal was signed with the backdrop of the US sanctions remaining omnipresent until the potential ousting of President Donald Trump later this year by Democratic candidate Joe Biden. If the latter does take the White House, Iranian authorities expect the US to re-enter the long-forgotten 2015 nuclear deal.
The deal is expected to raise the field’s output by about 40mn barrels over a
57 IRAN Country Report September 2020 www.intellinews.com
