Page 12 - MEOG Week 14 2022

MEOG NEWS IN BRIEF MEOG

said: “In line with the policies of the 13th the impact of “the jihadi management†but by the end of February as prices soared,
administration to increase oil production Owji attributed to the new administration. Beijing reportedly ignored United States calls
and exports, especially the emphasis of But independent news reports have indicated for a coordinated oil release and instead kept
the Minister of Petroleum and CEO of the a boost in recent months. building up its reserves.
National Iranian Oil Company on restoring Based on multiple reports by industry To put Owji’s numbers in context, without
production capacity, necessary planning was sources and foreign news agencies throughout US sanctions and full-capacity exports, Iran’s
made at Iranian Offshore Oil Company to 2021, it was clear that Iran’s oil exports had total annual oil revenue should top $60 billion,
return the company’s production capacity substantially increased from a low of 200,000 while it was under $20 billion in the past 12
to the conditions before the 2018 sanctions barrels per day in 2019 to around 750,000 months. With oil at above $100 a barrel since
during the 6-month period from October barrels in early 2021. the Russian invasion of Ukraine, which was
2021 to March 2022. Owji explained that the government not the case in the past 12 months, revenues
He added: “Accordingly, in Khark and budget for the year 1400 assumed a revenue of are certainly higher now, but would hardly
Lavan regions, which had the problem of $17,355 billion from all hydrocarbon exports. reach even half of what it could be if sanctions
reduced production, two major and effective Based on law, the oil ministry receives 14.5 were lifted.
measures were taken immediately.” percent of this amount to reinvest in the sector Given the lost revenues since 2018 when
SHANA while 20 percent is saved in the National sanctions began, the additional oil income
Development Fund. The remaining 65.5 since early 2021 helps Iran but is insufficient
Iranian minister gives percent goes into the government’s operating to make bring about a major improvement in
its finances when the government owes tens
budget. Owji said that because of higher
details of higher oil exports, instead of $11,368 billion going to the of billions of dollars to domestic banks and
creditors.
government, it received 10 percent more.
revenues received 10 percent more from hydrocarbon IRAN INTL
Owji then stated that the government
Iran increased oil revenues 40 percent in past exports than forecast in the budget. The
12 months and injected 10 percent above the budget was based on export of one million SERVICES
budget forecast into government coffers, the barrels of crude a day. The question here is
oil minister has said. that if 40 percent more was exported, why the Saipem wins new drilling
In a two-part interview published by government’s actual share increased only by
official government new website, IRNA, on 10 percent. contracts
Tuesday and Wednesday (April 5, 6), Javad The explanation might lie in the one
Owji presented a rosy picture of oil ministry million barrel per day export volume set in the Saipem has been awarded new contracts in
accomplishments since he was appointed budget in early 2021, when Iran was probably Offshore Drilling in the Middle East and in
minister last August. exporting less, around 700,000 barrels. This West Africa for a total amount of over 400
Although refusing to say who were Iran’s volume might have increased later to above million USD.
oil customers or details about export volumes one million, with the government eventually Two contracts have been awarded in the
and destination, Owji said that in the Iranian receiving 10 percent more for the full year, Middle East for two high specification jack-
year 1400 that ended March 20, forty percent and not 40 percent. up drilling units, consisting of drilling and
more crude and other hydrocarbon fuels were Owji’s remarks do seem to show that Iran’s workover operations for a duration of five
exported than in the previous year. illicit oil exports might have received a further years. The start of operations is scheduled for
Roughly six months of this period fell boost in the closing months of 2021 and early the fourth quarter 2022.
into the presidential term of Hassan Rouhani 2022. China being the main destination, Each contract includes options for two
and his oil minister Bijan Zanganeh, and six there were reports in the fall that Beijing was additional years. These projects will involve
months was managed by Owji under Ebrahim building up reserves, especially in December, one Saipem jack-up unit and a new high
Raisi’s presidency. by around 900,000 bpd, after months of small specification jack-up chartered from CIMC
It is not fully clear from the interview how additions. Group for the project.
much of the additional exports were managed Expectations were that China would slow With these additional awards in the Middle
by the previous administration and what was down the stockpiling of oil in early 2022, East, Saipem consolidates its presence in this

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