Page 4 - DMEA Week 31 2022

DMEA COMMENTARY DMEA

Iran says oil sector

funding in place,

agrees refinery deal

Ambitious projects throughout the oil and gas value chain are receiving significant
funding as Iran looks to rebuild from years in the geopolitical wilderness.

MIDDLE EAST IRAN’S Oil Minister this week said that plans focus on expansion throughout the value chain.
are in place for the huge levels of investment
required to build out the country’s oil projects Upstream
WHAT: while announcing financing deals for two major In June, the National Iranian Oil Co. (NIOC)
The country’s oil minister new refineries. signed a $7bn investment deal with local compa-
has said that more than Speaking on national TV this week, Javad nies, banks and the National Development Fund
half of its eye-watering Owji reiterated that $160bn of investment will be of Iran (NDFI) to raise output at Azadegan, Iran’s
funding total has been required over the next eight years to enable Iran largest oilfield, to 570,000 bpd from the current
sourced, though the to complete oil development projects. “Planning combined 215,000 bpd across the north and
deals signed are not yet has been done to provide this figure, and consid- south development projects.
binding. ering the current progress [in our plans] there Azadegan is located along the border with
will be no problem in this regard,” he said. Iraq, and Owji noted that such shared assets are
WHY: He added that the government has attracted Iran’s top priority.
Tehran is keen to ramp more than $80bn, leaving less than 50% to be Meanwhile, in March, NIOC signed a
up its capacity across the sourced, highlighting the recent $40bn memo- $530mn, 20-year agreement with a foreign
up- and downstream. randum of understanding (MoU) signed with company to apply enhanced oil recovery (EOR)
Russian gas monopoly Gazprom. However, the techniques at the oil layer of the South Pars gas
WHAT NEXT: official Islamic Republic News Agency (IRNA) field, which it shares with Qatar.
Financing has now reported just a week or so ago that $50bn had Located 130 km off Iran’s southern coast in 67
been secured for the been secured, including the Gazprom deal. metres of water, the South Pars Oil Layer (SPOL)
development of two major Meanwhile, deals have also been struck with has an estimated 7bn barrels of oil in place (OIP),
refineries on the south local banks to fund 600,000 barrels per day (bpd) 900mn barrels of which are seen as recoverable,
coast. of new refining projects as Tehran maintains its with first phase production reaching 25,000 bpd

P4 www. NEWSBASE .com Week 31 04•August•2022