Page 8 - MEOG Week 10 2022

MEOG FINANCE & INVESTMENT MEOG

Iran makes another

spending promise

IRAN THE Iranian government this week said it would maintaining oil production levels was another
invest $4bn in oil and gas projects in the south- focus area for investment, pointing to the need
ern Khuzestan Province as the sums promised for well workovers, additional processing facil-
for investment continue to spiral. ities and pipelines.
Speaking during an event in Khuzestan Oil production from the West Karoun fields
this week, Iranian Vice President for Executive currently runs at around 420,000 bpd and these
Affairs Solat Mortazavi said that the latest round fields are expected to account for more than a
of funding would be provided by the headquar- quarter of the planned capacity expansion.
ters for Execution of Imam Khomeini’s Order In October, NIOC CEO Mohsen Khojasteh-
(EIKO), the Mostazafan Foundation, the gov- mehr reiterated the company’s focus on expand-
ernment and Iranian banks. ing production from the area, targeting $11bn of
Khuzestan is home to the West Karoun oil- budget allocation to add 1mn bpd of new output.
field cluster, which includes several large oil- In comments carried by official state energy
fields that straddle the Iran-Iraq border, namely media outlet SHANA, he said: “We need around
Azadegan, Yaran, Yadavaran and Darkhoein, $11bn in investment to develop the second phase
with the first three divided into north and south of the North Azadegan and Yadavaran oilfields,
projects. as well as the South Azadegan and Yaran.” He
The block holds an estimated 67bn barrels of added that the 1mn bpd expansion was one of
oil in place (OIP). NIOC’s top priorities.
Oil Minister Javad Owji and officials from While the government’s funding will be wel-
the National Iranian Oil Co. (NIOC) have spo- comed, it pales in comparison to the $145bn
ken enthusiastically about the country’s plans to figure estimated to cover the development of oil
expand crude oil production capacity from the projects in the country, and this does not include
current level of around 3.8mn barrels per day to the $80bn or so that is needed to maintain and
5.7mn bpd by the end of the decade. expand gas production.
In January, NIOC’s director of corporate Iran anticipates that these funds will be pro-
planning, Karim Zobeidi, said: “By attracting vided by a combination of domestic and foreign
the necessary investment, we intend to increase investment, but as Iran’s economy continues to
Iran’s oil production capacity to 5.7mn barrels in struggle, and with EIKO and the Islamic Revo-
the next eight years.” lutionary Guard Corps (IRGC) having increased
He added that “the participation of domes- their influence in the energy sector, competing
tic investors in the drilling operations of new oil requirements and exposure to risk are likely to
wells is more important for us.” Zobeidi said that pose a sizeable challenge. ™

P8 www. NEWSBASE .com Week 10 09•March•2022