Page 15 - DMEA Week 18 2021

DMEA NEWS IN BRIEF DMEA

POLICY acknowledges that successful negotiations (IGCC) has relaunched the $7.2bn senior debt
would help bring much-needed investment required in the bank market.
Former Iran oil minister into the country’s oil industry. project, Air Products and Acwa Power
According to sources close to the
He was oil minister when the US imposed
runs for president severe nuclear sanctions targeting Iranian have relaunched the senior debt financing,
with the sponsors seeking to raise $5.6bn
crude exports and restricting its access
Iran needs to focus on developing its to dollars, prompting international oil with $1.6bn equivalent $ and SR tranche
refining and petrochemical sectors, so that companies to withdraw. already committed from Saudi Industrial
it eventually does not have to export crude The nuclear deal, known by the acronym Development Fund (SIDF).
and expose itself to international sanctions, JCPOA, lifted those measures in 2016, but the Banks have been given two weeks to renew
according to the country’s former oil minister window of opportunity to bring in Western the commitment on the consensus pricing,
Rostam Ghasemi, who is now running for partners closed when then-US President according to sources close to the scheme.
president. Donald Trump pulled the US from the deal in The senior debt financing had been
“In my expertise and experience in the area 2018 and reimposed the sanctions. launched initially in July 2020.
of oil, my priority is processing crude oil into “It is true that we face restrictions of Air Products and Acwa Power signed an
oil products,” Ghasemi told S&P Global Platts investment in the era of sanctions,” Ghasemi agreement with Saudi Aramco in August 2018
in an exclusive interview. “This must happen, said. “We have this experience in the past to form a gasification and power joint venture
because it guarantees our national security in years that we only invested $50 billion in 2011, (JV) for the Jazan IGCC project, which
the global oil market, even under sanctions. 2012 and later on. The sanctions naturally will located at Jazan Economic City in the
Under any conditions, it’s possible to sell oil limit investment in our country.” southwest area of Saudi Arabia.
products. Secondly, it brings added value and Iran pumped 2.30 million b/d of crude in The international consortium will own and
can create jobs.” March, according to the latest Platts survey operate the facility under a 25-year contract
The 57-year-old Ghasemi, who celebrated of OPEC production, and it will be eager to for a fixed monthly fee. Saudi Aramco will
his birthday on May 5, served as Iran’s oil regain its pre-sanctions output level of about supply feedstock for the JV, and the JV will
minister from 2011 to 2013 after retiring from 3.9 million b/d if a deal with the US can be produce power and hydrogen for the oil
the Iranian Revolutionary Guard Corps. agreed. major.
Ghasemi, who is now senior economic Ghasemi, who estimated Iran’s current Air Products has a 46 per cent holding
adviser to the IRGC commander and domestic consumption level at around 1.8 in the $12bn gasification project, with Acwa
remains involved in oil sales, has declared million b/d, spoke to Platts about the JCPOA Power holding a 25 per cent stake. Saudi
his candidacy for the June 18 presidential negotiations, his plans for the oil industry and Aramco Power Company has a 20 per cent
election. the country’s OPEC relations. holding, with the remaining 9 per cent held by
Whoever succeeds incumbent Hassan S&P PLATTS Gas Industry Company.
Rouhani will lead the country through new The JV’s produced utilities will serve
relations with historic rivals the US, as well as Aramco’s Jazan Refinery and terminal, a
neighboring Saudi Arabia. COMPANIES megaproject which will process heavy and
Rouhani’s administration is currently medium crude and add 400,000 barrels a day
engaged in indirect talks with the US, with the Debt financing for Jazan of refining capacity. The power plant will have
aim of restoring the nuclear deal and lifting a capacity of about 3,800MW.
sanctions that have severely hampered Iran’s IGCC relaunched Aramco awarded China’s Sepco an
crude exports, a significant source of revenue. engineering, procurement and construction
Ghasemi hails from a conservative The operating joint venture of the $12bn (EPC) contract to build and commission
camp far from the moderate Rouhani but Jazan integrated gasification combined cycle the Jazan integrated gasification combined-

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