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DMEA NEWS IN BRIEF DMEA

for investment in the crude oil storage sector. and Gas Production Company (AOGPC) during the contract period and after that
NIOC intends to enhance its crude oil storage 1-million-barrel storage tanks, Iranian Central belongs to the investor.
capacity by 7.7 million barrels. Oil Fields Company (ICOFC) 500,000-barrel This is the first time that NIOC provides
Iran’s oil production capacity is now close storage tanks and Iran Oil Terminals the private sector with opportunity to invest
to 4 mb/d, which the country plans to increase Company (IOTC) 4.2-million-barrel storage in crude oil storage projects. Of course, before
to 5.7 mb/d in coming years. Achieving this tanks. this the private sector was active in the project
goal requires an investment of $90 billion Furthermore, NIOC would need to invest of building storage tanks in Jask and Qeshm
over a ten-year period. Meanwhile, the crude in the completion and reconstruction of new terminals.
oil storage sector is very important for two storage tanks, renovating and maintaining Kurd Zangeneh pointed out that according
reasons: continuity of production and market exiting ones. This issue was highlighted to the NIOC statute, the steering and
management and creation of added value by Fereidoun Kurd Zangeneh, director of management of the crude oil production value
resulting from oil sales. investment and business at NIOC. chain from the exploration stage to export and
There are storage tanks for 130 million The duration of the crude oil storage tank delivery to consumers is one of the duties of
barrels of crude oil in Iran, of which 110 project contract is up to 18 years, and the this company. “One of the important links of
million barrels is available and 20 million construction period of the first phase is up this chain is the construction of storage tanks.
barrels under construction. National Iranian to 24 months since signing the contract, the Through NIOC direct investment, storage
Oil Refining and Distribution Company construction period of the second phase is tanks have been built for more than 60 million
(NIORDC) owns storage tanks for 35 million up to 12 months after the first phase, and the barrels of oil.”
barrels, while NIOC owns storage tanks for 95 crude oil storage period is up to 15 years after In accordance with the development of
million barrels. Gas condensate storage tanks the end of the period. oil fields and the increase of oil production
can handle 30 million barrels. Of course, investors must know that capacity in the country, the issue of building
During the aforesaid meeting, discussions NIOC only delivers crude oil with specified crude oil storage capacities is also important
were focused on crude oil storage tank specifications to the investor, and the rest of because it could be effective in the field of
construction projects based on Build-Own- the affairs, including design, construction, sales and meeting the customers’ needs, and
Operate (BOO), Build-Operate-Transfer construction, financing, storage, maintenance provide significant benefits for the country,
(BOT) and Engineering, Procurement, and delivery of crude oil rests with the while facilitating the operation of crude oil,
Construction and Finance (EPCF) models. investor. Kurd Zangeneh said that the he said.
Based on NIOC planning, National Iranian ownership of crude oil in this contract under SHANA
South Oil Company (NISOC) would need any circumstances belongs to NIOC and the
2-million-barrel storage tanks, Arvandan Oil ownership of tanks and ancillary facilities

P14 www. NEWSBASE .com Week 05 02•Febuary•2023