Page 15 - MEOG Week 25 2021

MEOG NEWS IN BRIEF MEOG

way before the recent developments, and the
country has been preparing for a strong return
to the oil market as earlier as 2019.
In January 2019, NIOC started a $6.2
billion national program based on which
recovery enhancement deals were to be signed
with local firms to boost oil production by
355,000 bpd at 33 fields.
The first group of such projects worth $800
million were signed that month to increase
the country’s oil production by 75,000 bpd.
A second group including 13 fields was
awarded in August 2020 to Iranian companies
with a total investment of $1.7 billion, to raise
oil production from domestic fields, looked had withdrawn the US in 2018. oil output further by 185,000 bpd.
at unconventional drilling and exploration The withdrawal of the US from the nuclear These contracts were inked by two NIOC
opportunities in a number of foreign arenas, deal was the beginning of a new round subsidiaries namely the Iranian Offshore
Ezra Yacob said at the virtual J.P. Morgan 2021 of sanctions on the Islamic Republic’s oil Oil Co. (IOOC) and the National Iranian
Energy, Power and Renewables conference. industry that pushed the country to reduce its South Oil Co. (NISOC), as employers, and 13
“It’s an oily prospect,” Yacob said of the oil production levels as its major oil customers domestic companies for the maintenance of
planned Oman well. “In Oman, we found pressured by the US refused to continue the production level and increasing recovery
a good partner with a country that has an buying Iranian oil. factor of several oil fields.
established oilfield services [network]. They According to unofficial data, Iran is The third group of deals worth €1.2 billion
understood that the contract terms needed to currently pumping nearly 2.5 million barrels were also signed between IOOC and NISOC,
spur unconventional development are slightly per day (bpd) of crude oil, while the country’s as employers, and eight Iranian companies
different than conventional.” output was about 3.83 million bpd in mid- for the maintenance of the production level
Yacob earlier this month was named to 2018. Now, the country is once again getting and increasing recovery factor of several other
succeed current CEO Bill Thomas in October ready to boost its oil output to the pre- oil fields. In one of these projects IOOC has
2021. sanction levels to claim its market share seized implemented a pilot enhanced oil recovery
At an analyst conference in November by other competitors in the region. In this (EOR) project in which a nanofluid has been
2020, EOG COO Billy Helms said the regard numerous production enhancement injected into an oilfield in southern Iran for
company believes access in Oman to projects underway across the country have the first time to boost its recovery factor.
“competitively priced” oilfield services and been ordered to accelerate the operations TEHRAN TIMES
equipment “is going to be required to make in order to finish the projects earlier than
tight oil successful” in the country. scheduled. Saudi oil exports drop in
Under the agreement with Tethys Oil for Having confidence on the above-
the Oman project, EOG will drill two test mentioned projects and planning, senior May
wells within two years to evaluate the acreage Iranian oil officials, including Minister Bijan
potential, Yacob said. He added the country Namdar Zanganeh, have repeatedly stressed Saudi Arabia’s oil exports retreated to 5.4mn
has a low entry cost and “significant” potential that NIOC is fully prepared to return to the oil barrels per day in May, recording the lowest
upside. market. level of exports since June 2020, compared
S&P PLATTS “We can easily reach [an output of] 6.5 with 5.42mn bpd of exports in April. The
million barrels per day,” Zanganeh said at a decline in exports reflected a similar decline
ceremony to award studies on the country’s in Saudi crude production to 8.134mn bpd in
OIL giant Azadegan oil field on May 31. May, down from 8.138mn bpd in April.
Earlier this month, NIOC’s Deputy The balance between Saudi oil production
NIOC pushing EOR projects Director for Production Affairs Farrokh and exports is destined for domestic
household and industrial consumers. Crude
Alikhani also said: “Precise weekly, monthly
in preparation for oil market and quarterly planning has been made to oil is the feedstock for Saudi Arabia’s huge
internationally competitive petrochemicals
restore oil production to pre-sanctions
return level, and if sanctions are lifted, most of the industry.
Saudi Arabia is the world’s largest oil
country’s oil production will be restored
As Vienna nuclear talks between Iran and within a month,” exporter and plays the role of swing producer
world powers show signs of progress, the After the re-imposition of sanctions to balance global supply and demand. It has
National Iranian Oil Company (NIOC) is also against the country, NIOC prepared a plan a 12mn bpd peak oil production capacity.
getting prepared for boosting the country’s oil for production control, in parallel, programs The kingdom curtailed oil production in the
output to pre-sanction levels or even higher. for production restoration were also put on aftermath of a historic oil production-cutting
Iran and other signatories of the 2015 the agenda, and plans were made to revive agreement reached between OPEC member
nuclear deal, officially known as the Joint production at one week, one month, and countries and non-OPEC countries led by
Comprehensive Plan of Action (JCPOA), quarterly intervals, Alikhani explained. Russia in April of 2020 that ended a brief oil
are currently negotiating the revival of the As mentioned by the official, NIOC’s price war.
mentioned pact from which Donald Trump plans for restoring production have been set NEWSBASE

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