Page 8 - MEOG Week 31 2022
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MEOG FINANCE & INVESTMENT MEOG
Iran planning for oil
project investment
IRAN IRAN’S Oil Minister this week said that plans has an estimated 7bn barrels of oil in place (OIP),
are in place for the huge levels of investment 900mn barrels of which are seen as recoverable,
required to build out the country’s oil projects. with first phase production reaching 25,000 bpd
Speaking on national TV this week, Javad and the second phase seen raising this to 55,000-
Owji reiterated that $160bn of investment will be 60,000 bpd.
required over the next eight years to enable Iran Owji added: “In the downstream sector, we
to complete oil development projects. “Planning reached an agreement with Gazprom to build
has been done to provide this figure, and consid- gas transmission and export pipelines to coun-
ering the current progress [in our plans] there tries such as Oman and Pakistan.”
will be no problem in this regard,” he said. Meanwhile, he was quoted by the Ministry
He added that the government has attracted of Petroleum’s (MoP) Shana news network as
more than $80bn, leaving less than 50% to be saying: “We have also signed 28 contracts with
sourced, highlighting the recent $40bn memo- a total value of over $1bn for collecting flare
randum of understanding (MoU) signed with gas, most of which have been signed with pri-
Russian gas monopoly Gazprom. vate companies that will use the collected gas as
However, the official Islamic Republic News payment.”
Agency (IRNA) report just a week or so ago that As has been common during the first 12
$50bn had been secured, including the Gazprom months of President Ebrahim Raisi, Owji cast
deal. blame for a lack of progress on sanctions and the
In June, the National Iranian Oil Co. (NIOC) previous administration. “At the beginning of
signed a $7bn investment deal with local compa- the 13th administration, there were 48 half-com-
nies, banks and the National Development Fund pleted projects worth $13bn in the Ministry of
of Iran (NDFI) to raise output at Azadegan, Iran’s Petroleum, which were followed up strongly
largest oilfield, to 570,000 barrels per day from afterwards,” he said.
the current combined 215,000 bpd across the However, he said that the final upstream
north and south development projects. phase of South Pars – Phase 11 – would “become
Azadegan is located along the border with productive soon once Platform 12C of Phase 12
Iraq, and Owji noted that such shared assets are of the field is installed at the location of Plat-
Iran’s top priority. form 11B before the end of the current Iranian
Meanwhile, in March, NIOC signed a calendar year”, with three refining trains to be
$530mn, 20-year agreement with a foreign launched at the remaining downstream Phase
company to apply enhanced oil recovery (EOR) 14 refining site during the same period.
techniques at the oil layer of the South Pars gas “By the end of this year, several petrochem-
field, which it shares with Qatar. ical projects, such as Hengam petrochemical
Located 130 km off Iran’s southern coast in 67 plant, worth about $2.6bn, will also come on
metres of water, the South Pars Oil Layer (SPOL) stream,” he concluded.
P8 www. NEWSBASE .com Week 31 03•August•2022
