Page 16 - MEOG Week 44 2021

MEOG NEWS IN BRIEF MEOG

discovery of new oil fields. It is only based on some bonds were issued and sold. projects in the face of tough sanctions and
identification of oil layers as well as technical Mohammadi said: “In order to maintain COVID-19 and unprecedented inflation.
studies on the data acquired from the current the status and influential role of NISOC in Mohammadi said that new capacity
hydrocarbon reservoirs of NISOC. national economy, various initiatives and building to make up for production fall-off
It has to be taken into account that an oil practices were employed; the most important was a key achievement of these strategic
reservoir could not be extracted entirely. The of which were implementing EPC and EPD projects.
average rate of recovery from an oil reservoir projects in 28 oil reservoirs that had been SHANA
stands at 28%, but new technologies and designed since 2017.”
enhanced oil recovery (EOR) may increase it Due to tough sanctions, NISOC’s
further. contractors were required to supply 80% of SERVICES
Mohammadi said NISOC’s production commodities needed for the projects from
capacity had been raised despite tough domestic manufacturing companies. Bahri expands VLCC oil fleet
sanctions, COVID-19 outbreak and Mohammadi noted that despite the
unprecedentedly high inflation rate. He COVID-19 impact on the labor market across with new tanker
added that the natural pressure fall-off in the globe, drilling rigs did not remain idle.
production from some oil wells had also been Furthermore, he said, sustainable employment Bahri, the Kingdom’s national shipping
compensated to a large extent. and local manpower hiring became a must. carrier, has expanded its Very Large Crude
He said that the latest round of sanctions Noting that the 28-reservoir project is Carrier fleet to 42 with the addition of its first
against Iran’s petroleum industry, which considered a green project in the petroleum “gas ready” vessel, named “Rayah,” it said in a
were imposed in 2018, caused the toughest industry, he said: “In this regard, the addition statement on Sunday.
restrictions for oil production and export. of gas flares has also been prevented. The The tanker that can run on gas is built
Mohammadi said the US had imposed measure was seriously pursued in order by International Maritime Industries and
sanctions on Iran to bring the country’s oil to prevent the occurrence of harmful Hyundai Heavy Industries at the latter’s
production down to zero. “The US failed to environmental impacts, and all contractors shipyard in Ulsan, South Korea. Bahri signed
realize its objective due to the round-the-clock are obliged to prepare environmental impact a SR371 million ($98.9 million) contract
efforts made by petroleum industry staff. assessment (EIA) before implementation of signed in September 2019 to build it.
However, it is noteworthy that this round of their projects.” The construction of the vessel marks the
sanctions is tougher than those imposed in In the implementation of the 28-reservoir successful completion of IMI’s first VLCC
early 2010.” project, a complete chain of work has been project, the statement said.
The previous round of sanctions imposed considered with the aim of achieving a Saudi Arabia made impressive progress in
by the US were aimed at limiting Iran’s oil complete result, so the result of the work of maritime connectivity at the regional level,
exports to 1 mb/d, but this time, the objective the general contractor in this project is to according to the UN Conference on Trade
was to zero Iran’s oil exports. However, thanks achieve the main goal of oil production for the and Development report for the third quarter
to initiatives by various organs, Iran’s oil country. of 2021.
exports continued as much as possible. In addition, 28 reservoir contracts were The Kingdom achieved 70.68 points in the
Nonetheless, the current round of awarded to E&P contractors (exploration Maritime Connectivity Index, which is the
sanctions largely decreased Iran’s oil and production companies) and consortia highest in the region, said the report.
production and exports, thereby slashing of companies active in the field of EPC The index includes several sub-indicators,
Iran’s oil income. (engineering, production, contracting) and most notably, the number of scheduled visits
As NIOC saw its budget fall sharply, the EPD contractors (design, production and by ships to the country within a week, capacity
necessary financing for continued production drilling). of the ships in standard units, in addition to
from oil fields, household and industrial gas They were all Iranians who won tender the number of regular service paths provided
supply and feedstock for petrochemical and bids, which led to the growth of upstream by shipping lines to and from the country.
refining plants had to be provided. Therefore, contractors and continuation of development ARAB NEWS

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