Page 4 - MEOG Week 30 2022

MEOG COMMENTARY MEOG

Iran makes new find, reiterates

output expansion plans

Tehran has provided more detail on its deal with Gazprom

while announcing another massive gas discovery.

IRAN IRAN this week reiterated plans to significantly According to the Ministry of Petroleum’s
increase its production capacities for oil and gas (MoP) Shana news agency, that agreement cov-
by the end of the decade. Meanwhile, details ers the development of the Kish and North Pars
WHAT: have emerged about investments to be made by gas fields, pressure enhancement at the super-
Of the Russian firm’s Russian companies following last week’s head- giant South Pars offshore gas field and the devel-
planned $40bn line-grabbing deal. opment of six undisclosed oilfields. The parties
investment, $4bn will While the expansion plans are not new, the will also engage on gas and product swaps, while
be spent expanding oil level of investment mentioned is, with the Rus- Gazprom will work to complete LNG projects
production from seven sian commitment accounting for around a quar- abandoned when sanctions were imposed on
fields in the south-west ter of projected spending. Iran in 2012 and construct gas export pipelines.
of Iran. According to the official Islamic Republic The deal also covers scientific and technological
News Agency (IRNA), the National Iranian Oil co-operation.
WHY: Co. (NIOC) has a seven-year investment plan Early this month, NIOC signed a $7bn invest-
Another major gas field that will allow oil production to rise to 5.7mn ment deal with local companies, banks and the
has been discovered near barrels per day, with that of gas rising to 1.5bn National Development Fund of Iran (NDFI) to
the supergiant South Pars cubic metres per day, up from 3.8mn bpd and 1 raise output at Azadegan, Iran’s largest oilfield, to
asset. bcm per day respectively by 2029. 570,000 bpd from the current combined 215,000
The outlet noted, though, that oil output is bpd across the north and south development
WHAT NEXT: running at just under 2.6mn bpd owing to sanc- projects.
Much of Iran’s planned tions hampering exports. Meanwhile, in March NIOC signed a
oil and gas spending $530mn, 20-year agreement with a foreign
will focus on increasing Investment company to apply enhanced oil recovery (EOR)
recovery rates from To achieve this, the country will require a com- techniques at the South Pars Oil Layer (SPOL)
oilfields and improving bined $160bn of domestic and foreign direct Located 130 km off Iran’s southern coast in
gas reservoir pressure. investment (FDI), with the IRNA report sug- 67 metres of water, the oil layer has an estimated
gesting that $50bn has already been secured, 7bn barrels of oil in place (OIP), 900mn barrels
including last week’s $40bn memorandum of of which are seen as recoverable, with first phase
understanding (MoU) with Russian gas monop- production reaching 25,000 bpd and the second
oly Gazprom. phase seen raising this to 55,000-60,000 bpd.

P4 www. NEWSBASE .com Week 30 27•July•2022